Notas de lectura
Lecture notes: Economic fluctuations and unemployment
- Grado
- Institución
- Book
An extensive document of the notes provided by the lecturer.
[Mostrar más]Vista previa 2 fuera de 15 páginas
Vista previa 2 fuera de 15 páginas
Añadir al carrito
Añadir al carrito
Libro relacionado
Título del libro:
Autor(es):
- Edición:
- ISBN:
- Edición:
Más resúmenes para
-
Samenvatting The Economy - Economics (ECONOM01)
-
Summary microeconomics weeks 1-8
-
Summary of lecture notes and textbook
Vendedor
Seguir
claudiacloete112
Vista previa del contenido
Unit 13: EconomicFluctuations and
Unemployment
Growth and Fluctuations
Why should we care about economic fluctuations or business cycles?
Impact on unemployment → income → people’s wellbeing
Gross Domestic Product
Gross Domestic Product (GDP) is the total value of all final goods and services produced
within the national boundaries of a country in a particular period.
- Calculating quarterly and yearly
- Falls for 2 quarters → in recession
Nominal GDP is the value of final goods and services produced in a given year when valued
at the prices of that year (current prices).
Real GDP is the value of final goods and services produced in a given year when valued at
the prices of a reference base year (constant prices).
- Interest in quantity
Nominal and real GDP
To calculate economic growth, real GDP values are required to ensure we measure the
amount by which output has changed due to production increases rather than the amount
by which it has changed due to price increases.
GDP 2016 = R2 356
GDP 2017 = R3 457
Growth in the GDP
When GDP increases, either: Growth =
(3 457−2 356)
×100
- More goods and services are produced or 2 356
- Higher prices were paid
Economic growth is the percentage change in real GDP between two periods.
Real GDP∈current year−Real GDP∈ previous year
Real GDP growthrate= ×100
Real GDP∈ previous year
*To calculate economic growth, real GDP values are required to ensure we measure the amount
by which output has changed due to production increases rather than the amount by which
output has changed to production increases rather than the amount by which it has changed
due to price increases.
, GDP per capita is the average annual income of the people in the economy it is calculated
by dividing GDP by the total population
GDP
Total population
Economic growth is the annual rate of increase in total production in the economy
measured as real GDP.
- Positive economic growth occurs when the rate of economic growth increases faster
than the population growth rate, or when there is an increase in per capita GDP.
The business cycle
Economic growth is not a smooth process.
Business cycle: Alternating periods of positive and negative growth rates.
The business cycle has four phases: troughs, an upswing (expansion/boom), a peak and
downswing.
Recession: Extended period when output is declining or below its potential level. Negative
economic growth for two consecutive quarters.
NB
The business cycle affects labour
market outcomes.
Output growth and changes in unemployment
Okun’s Law
Okun’s Law: a strong and stable (empirically observed) relationship between unemployment
and GDP growth (losses in a country’s production).
Changes in the rate of GDP growth are negatively correlated with the unemployment rate.
NB
Increase in production → Increase in demand for labour → Decrease in unemployment
Output falls → Unemployment rises → Well-being falls
Los beneficios de comprar resúmenes en Stuvia estan en línea:
Garantiza la calidad de los comentarios
Compradores de Stuvia evaluaron más de 700.000 resúmenes. Así estas seguro que compras los mejores documentos!
Compra fácil y rápido
Puedes pagar rápidamente y en una vez con iDeal, tarjeta de crédito o con tu crédito de Stuvia. Sin tener que hacerte miembro.
Enfócate en lo más importante
Tus compañeros escriben los resúmenes. Por eso tienes la seguridad que tienes un resumen actual y confiable. Así llegas a la conclusión rapidamente!
Preguntas frecuentes
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
100% de satisfacción garantizada: ¿Cómo funciona?
Nuestra garantía de satisfacción le asegura que siempre encontrará un documento de estudio a tu medida. Tu rellenas un formulario y nuestro equipo de atención al cliente se encarga del resto.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller claudiacloete112. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for 2,70 €. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
45,681 summaries were sold in the last 30 days
Founded in 2010, the go-to place to buy summaries for 14 years now