Today’s Agenda
• Last question
• 6 Key diagrams
• Intro to 2.3
• Try out Cerego
• If time: Exit slip
What is unemployment and how is it measured?

I’ll take Macro for 1000!
Explain why, in the monetarist/new classical approach, while there may be short-term fluctuations in output, the economy will always return to the full employment level of output in the long run.

Monetarists believe that in a free market the economy will always move towards its long-run equilibrium. The price level does not change the level of real output.

http://www.s-cool.co.uk/a-level/assets/learn_its/alevel/economics/aggregate-demandand-aggregate-supply/aggregate-supply/2007-12-04_105406.gif

6 Key Diagrams
• Take a card.
• Find your dance diagram partner.
• Make diagrams, not war.

Supply & Demand http://thismatter.com/economics/images/total-surplus.gif

LRAS (Monetarists)

PPC http://www.harpercollege.edu/mhealy/ecogif/ppc/ppcbasic.gif

Supply & Demand + Subsidy http://1.bp.blogspot.com/-1dAWC7WchPk/UItFz5ca_9I/AAAAAAAAACo/UdjZJcSkHjg/s1600/Subsidy-on-Sellers.png

LRAS (Keynesians) http://www.s-cool.co.uk/a-level/assets/learn_its/alevel/economics/aggregate-demand-and-aggregate-supply/supply-side-policies/2007-12-04_120319.gif

PEC

Syllabus Item – 92
• Define the term unemployment.
• Explain how the unemployment rate is calculated.

What is unemployment?

For your chosen developed and developing countries…
Find out:
• Rate of unemployment for each country
• How the unemployment rate is distributed
(regions, age groups, ethnic groups, men and women)
• How the 2 governments define and calculate unemployment
* Add this info to the other info you had gathered
* For the statistics start with the OECD

How does this quote relate to the unemployment rate?
"There are three kinds of lies: lies, damned lies, and statistics.”
-- Mark Twain

Syllabus http://ibeconomics-isd.weebly.com/