A. Who's Hurt?
Savers, lenders, creditors, those on a fixed income.
B. Who Gains?
Debtors.
*COLA (Cost of Living Adjustment) automatically increases with inflation.
1. Unemployment- failure to use available resources particularly labor to produce goods and services
1a. Who's In the Labor Force? anyone above 16 years of age who's willing to work
1b. Who's Not In the Work Force? People in the military, homemakers, retired/ disabled people, people in mental institutions, and those not looking for work.
1c. Unemployment Rate- 4-5% = full employment of natural rate of unemployment (NRU)
2. How to Calculate Unemployment
(# of unemployed/ # of employed + # of unemployed x 100)
2a. Four Types of Unemployment
Frictional- people who are "in between jobs" they have transferable skills
Structural- changes in work force makes some skills obsolete. They don't have transferable skills
Seasonal- due to time of year, nature of season
Cyclical- unemployment that occurs because of recession
*Frictional & Structural are unavoidable types of unemployment.
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