CHAPTER SIX Unemployment ooeu macroeconomics N.Gregory Mankiw College of Management,HUST
macroeconomics N. Gregory Mankiw macro College of Management, HUST CHAPTER SIX Unemployment
Chapter objectives The natural rate of unemployment: what it means ■what causes it -understanding its behavior in the real world CHAPTER 6 Unemployment slide 1
slide 1 The natural rate of unemployment: § what it means § what causes it § understanding its behavior in the real world
Content 1.The natural rate of unemployment: 2.Frictional unemployment 2.1 Causes of frictional unemployment 2.2 The effect of public policy 3.Unemployment from wage rigidity 4.Chapter summary CHAPTER 6 Unemployment slide 2
slide 2 1. The natural rate of unemployment: 2. Frictional unemployment 2.1 Causes of frictional unemployment 2.2 The effect of public policy 3. Unemployment from wage rigidity 4. Chapter summary
Natural Rate of Unemployment ■ Natural rate of unemployment: the average rate of unemployment around which the economy fluctuates. -In a recession,the actual unemployment rate rises above the natural rate. -In a boom,the actual unemployment rate falls below the natural rate. CHAPTER 6 Unemployment
§ Natural rate of unemployment: the average rate of unemployment around which the economy fluctuates. § In a recession, the actual unemployment rate rises above the natural rate. § In a boom, the actual unemployment rate falls below the natural rate. 1
U.S.Unemployment,1958-2002 11 098 65 4 3 2 1955196019651970197519801985199019952000 -Unemployment rate -Natural rate of unemployment CHAPTER 6 Unemployment slide 4
slide 4 2 3 4 5 6 7 8 9 10 11 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 P e r c e n t o f la b o r f o r c e Unemployment rate Natural rate of unemployment 1