Macro 10

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Gale Pooley

Macro 10

Economy & Finance

Quiz
Assumptions:
Unemployed: 1,400
Employment Rate: 93%
Population: 42,000
<16: 12%
Questions:
How many are employed?
What is the Labor Force Participation Rate?

# %
Unemployed
Employed
Labor Force 100%
# %
Adults
Less than 16
Population 100%
LFPR. LF ÷ Adults

Three Types of
Unemployment
Frictional
Seasonal
Structural

Frictional
Unemployment
Time to find a new
job

Seasonal
Unemployment
Demand changes
with the season

Structural
Unemployment
Too many workers
Change in Demand

Structural
Unemployment
Creative
Destruction
10% a year

Unemployment
Insurance
Government program to
provide income when
workers become
unemployed

Unemployment
Insurance
Unintended Consequence
Moral Hazard
May prolong unemployment

Minimum Wage Laws
Government sets a
minimum wage that can
legally be paid
Price Floor

$0
$5
$10
$15
$20
0 10 20 30 40 50 60
Supply
Demand
Wage
Workers
Equilibrium
Wage
30 workers
30 jobs
no
unemployment
Minimum Wage
40 workers
20 jobs
20 unemployed
workers
Minimum Wage
20 workers
get a raise
10 workers
lose job
10 new
unemployed
workers
Minimum
Wage

Efﬁciency Wages
Employee Wage Pizzas Productivity
Wage per Pizza
Bob $10 5 $2.00
Bill $20 12 $1.67

Efﬁciency Wages
More Healthy
Lower Turnover
Higher Quality
More Effort

Dematerialize
Physical Atoms
Virtual Bits

99% Reduction in Energy
449 watts to 5 watts

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From Customer Success Summit 2017 - Dan Finnigan, CEO at Jobvite, discusses "The Implications of Changing Workforce Demographics". Learn more about Customer Success Summit: http://customersuccesssummit.com Totango is the leading enterprise- grade customer success platform that helps recurring revenue businesses proactively impact business outcomes with customer success. With solutions to empower Customer Success Teams or entire companies, Totango enables everyone to participate in customer success. Learn more at www.totango.com.

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Macro 10

2. Lecture 10 Macroeconomics

3. Quiz Assumptions: Unemployed: 1,400 Employment Rate: 93% Population: 42,000 <16: 12% Questions: How many are employed? What is the Labor Force Participation Rate?

4. # % Unemployed Employed Labor Force 100% # % Adults Less than 16 Population 100% LFPR. LF ÷ Adults

5. Three Types of Unemployment Frictional Seasonal Structural

6. Frictional Unemployment Time to find a new job

7. Seasonal Unemployment Demand changes with the season

8. Structural Unemployment Too many workers Change in Demand

10.

11. Structural Unemployment Creative Destruction 10% a year

12. Unemployment Insurance Government program to provide income when workers become unemployed

13. Unemployment Insurance Unintended Consequence Moral Hazard May prolong unemployment

14. Minimum Wage Laws Government sets a minimum wage that can legally be paid Price Floor

15. $0 $5 $10 $15 $20 0 10 20 30 40 50 60 Supply Demand Wage Workers Equilibrium Wage 30 workers 30 jobs no unemployment Minimum Wage 40 workers 20 jobs 20 unemployed workers Minimum Wage 20 workers get a raise 10 workers lose job 10 new unemployed workers Minimum Wage

16. Efﬁciency Wages Employee Wage Pizzas Productivity Wage per Pizza Bob $10 5 $2.00 Bill $20 12 $1.67

17. Efﬁciency Wages More Healthy Lower Turnover Higher Quality More Effort

18. iPhone Economics

19.

20.

21.

22. Dematerialize Physical Atoms Virtual Bits

23. 99% Reduction in Energy 449 watts to 5 watts

Macro 10

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