Nawal's AP Macroeconomics Blog

Unemployment:  Unemployment : The failure to use available resources, particularly labor to produce desired goods and services.  Population : Total amount of people in a country. Labor Force : Number of people in a country that is employed or unemployed.  Employed :  - People who are 16 years of age or older who have a job.  -If you work at least one hour every 2 weeks, you are employed.  Unemployed :  -People who are of 16 years of age or older that don't have a job, but they are actively searching for a job within the last 2 weeks. Not in the labor force:  Kids Full time students  Retired Disabled people Homemakers Mentally institutionalized people Incarcerated  Military Folk Discouraged workers Unemployment rate formula:  ((Number of the unemployed)/(Total labor force)) X 100 Total Labor Force: Number of unemployed + Number of employed  Type of unemployment Frictional : T...

Inflation Reduces the purchasing power of money.  When inflation occurs each dollar of income will buy fewer goods than ever before.  3 Causes of Inflation: The government prints too much money.  Demand- pull inflation: Too many dollars chasing too few goods. Demand pulls up prices.  Cost- Push inflation: High production costs that increases prices.  Unanticipated inflation : Hurt by inflation: Lenders (money loaned out is at a fixed rate); People who are on a fixed income; Savers   Helped by inflation: The borrowers; a business where the price of the product increases faster than the price of resources; flexible income people.  Unaffected or uncertain by inflation:  Arm (an adjustable rate mortgage), People who have: a salary, a pension or social security that receives a cola (cost of living adjustment).  Nominal interest rate : the unadjusted cost of borrowing or lending money. Real interest rate: the c...