The document contains lecture slides on macroeconomics topics including unemployment rates, labor force participation rates, and how they are calculated. It defines key terms like labor force, employed, unemployed, not in labor force. It provides examples to show how to calculate unemployment and labor force participation rates given data on population, employment, and unemployment figures. Formulas shown include the unemployment rate equals unemployed divided by labor force, and labor force participation rate equals labor force divided by total adult population.

2. Lecture 9
Macroeconomics

3. Opening
Prayer

4. Questions

5. Start
Recording

9. U.S.
One cow produces
22,248 lbs. of milk per year
India
One cow produces
2,500 lbs. of milk per year
U.S. cows are almost 9 times
more productive than Indian
cows.
Source: http://blogs.ucdavis.edu/egghead/2016/04/27/livestock-and-climate-change-facts-
and-fiction/
=

10. Chapter 11
Unemployment

11. Three Types of
Unemployment

12. Three Types of
Unemployment
Frictional

13. Three Types of
Unemployment
Frictional
Seasonal

14. Three Types of
Unemployment
Frictional
Seasonal
Structural

15. Three Types of
Unemployment
Frictional
Seasonal
Structural

16. Three Types of
Unemployment
Frictional
Seasonal
Structural

17. Frictional
Unemployment

18. Frictional
Unemployment
Time to find a new
job

19. Seasonal
Unemployment

20. Seasonal
Unemployment
Demand changes
with the season

21. Structural
Unemployment

22. Structural
Unemployment
Too many workers

23. Structural
Unemployment
Too many workers
Change in Demand

27. What kind of
unemployment
is caused by
smartphones?

30. Employed

31. Employed
paid employees

32. Employed
paid employees
work in own business

33. Employed
paid employees
work in own business
unpaid workers in family business

34. Employed
paid employees
work in own business
unpaid workers in family business
full-time and part-time

35. Employed
paid employees
work in own business
unpaid workers in family business
full-time and part-time
jobs but temporary absence

36. Unemployed

37. Unemployed
not employed

38. Unemployed
not employed
available

39. Unemployed
not employed
available
tried to find a job in the last four weeks

40. Unemployed
not employed
available
tried to find a job in the last four weeks
waiting to be recalled from layoff

41. Not in Labor Force

42. Not in Labor Force
not employed

43. Not in Labor Force
not employed
full-time student

44. Not in Labor Force
not employed
full-time student
homemaker

45. Not in Labor Force
not employed
full-time student
homemaker
military

46. Not in Labor Force
not employed
full-time student
homemaker
military
retiree

47. Not in Labor Force
not employed
full-time student
homemaker
military
retiree
discouraged workers

48. Not in Labor Force
not employed
full-time student
homemaker
military
retiree
discouraged workers

49. Discouraged Worker

51. Unemployment Rate

52. Unemployment Rate

53. Unemployment Rate
Labor Force
Participation Rate

54. Unemployment Rate
Labor Force
Participation Rate

55. Unemployment Rate
Labor Force
Participation Rate
Rate are Ratios

56. Discouraged Worker

57. Discouraged Worker
People who would like
to work but have given
up looking for a job in
the last four weeks

58. Labor Force

59. Labor Force
Adults 16+ who have jobs
or are looking for jobs.

60. Labor Force
Adults 16+ who have jobs
or are looking for jobs.
Employed + Unemployed

61. Labor Force
Participation Rate

62. Labor Force
Participation Rate
The percent of the Adult
Population that is in the
Labor Force

64. Total
Population

65. Total
Population

66. Total
Population
Under 16

67. Total
Population
Adults 16+ Under 16

68. Total
Population
Adults 16+
Adults 16+ Under 16

69. Total
Population
Adults 16+
Adults 16+ Under 16

70. Total
Population
Adults 16+
Adults 16+ Under 16
Not in the Labor Force

71. Total
Population
Adults 16+
Adults 16+ Under 16
In the Labor Force Not in the Labor Force

72. Total
Population
Adults 16+
In the Labor Force
Adults 16+ Under 16
In the Labor Force Not in the Labor Force

73. Total
Population
Adults 16+
In the Labor Force
Adults 16+ Under 16
In the Labor Force Not in the Labor Force

74. Total
Population
Adults 16+
In the Labor Force
Adults 16+ Under 16
In the Labor Force Not in the Labor Force
Unemployed

75. Total
Population
Adults 16+
In the Labor Force
Adults 16+ Under 16
In the Labor Force Not in the Labor Force
Employed Unemployed

76. Labor Force Participation Rate

77. Labor Force Participation Rate
Labor Force Participation Rate (LFPR) = In the Labor Force ÷ Adults

78. Labor Force Participation Rate
Adults 16+
Labor Force Participation Rate (LFPR) = In the Labor Force ÷ Adults

79. Labor Force Participation Rate
Adults 16+ In the Labor Force
900
Not in the Labor Force
400
Labor Force Participation Rate (LFPR) = In the Labor Force ÷ Adults

80. Labor Force Participation Rate
Labor Force Participation Rate (LFPR) = 900 ÷ 1300
Adults 16+ In the Labor Force
900
Not in the Labor Force
400
Labor Force Participation Rate (LFPR) = In the Labor Force ÷ Adults

81. Labor Force Participation Rate
Labor Force Participation Rate (LFPR) = 900 ÷ 1300
Labor Force Participation Rate (LFPR) = .692 or 69.2%
Adults 16+ In the Labor Force
900
Not in the Labor Force
400
Labor Force Participation Rate (LFPR) = In the Labor Force ÷ Adults

82. Unemployment Rate

83. Unemployment Rate
Unemployment Rate = Unemployed ÷ Labor Force

84. Unemployment Rate
Unemployment Rate = Unemployed ÷ Labor Force
Labor Force = Employed + Unemployed

85. Unemployment Rate
In the Labor Force
Unemployment Rate = Unemployed ÷ Labor Force
Labor Force = Employed + Unemployed

86. Unemployment Rate
In the Labor Force Employed
850
Unemployed
50
Unemployment Rate = Unemployed ÷ Labor Force
Labor Force = Employed + Unemployed

87. Unemployment Rate
In the Labor Force Employed
850
Unemployed
50
Unemployment Rate = 50 ÷ 900
Unemployment Rate = Unemployed ÷ Labor Force
Labor Force = Employed + Unemployed

88. Unemployment Rate
In the Labor Force Employed
850
Unemployed
50
Unemployment Rate = 50 ÷ 900
Unemployment Rate = .056 or 5.6%
Unemployment Rate = Unemployed ÷ Labor Force
Labor Force = Employed + Unemployed

89. 3,000 people live in Pooleynesia. There are
250 people under 16. 450 people are not
in the labor force. 230 people are
unemployed.
1. What is the Labor Force Participation
Rate?
2. What is the Unemployment Rate?

90. Breakout Rooms

93. Population

94. Population 3,000

95. Population 3,000

96. Population 3,000

97. Population 3,000
Under 16

98. Population 3,000
Under 16 250

99. Population 3,000
Under 16 250

100. Population 3,000
Under 16 250

101. Population 3,000
Under 16 250
Adults

102. Population 3,000
Under 16 250
Adults 2,750

103. Population 3,000
Under 16 250
Adults 2,750

104. Population 3,000
Under 16 250
Adults 2,750

105. Population 3,000
Under 16 250
Adults 2,750
Not in the Labor Force

106. Population 3,000
Under 16 250
Adults 2,750
Not in the Labor Force 450

107. Population 3,000
Under 16 250
Adults 2,750
Not in the Labor Force 450

108. Population 3,000
Under 16 250
Adults 2,750
Not in the Labor Force 450

109. Population 3,000
Under 16 250
Adults 2,750
Not in the Labor Force 450
In the Labor Force

110. Population 3,000
Under 16 250
Adults 2,750
Not in the Labor Force 450
In the Labor Force 2,300

111. Population 3,000
Under 16 250
Adults 2,750
Not in the Labor Force 450
In the Labor Force 2,300 83.6%

112. Population 3,000
Under 16 250
Adults 2,750
Not in the Labor Force 450
In the Labor Force 2,300 83.6%
Labor Force Participation Rate
Labor Force ÷ Adults

113. Population 3,000
Under 16 250
Adults 2,750
Not in the Labor Force 450
In the Labor Force 2,300 83.6%
Labor Force Participation Rate
Labor Force ÷ Adults
Employed

114. Population 3,000
Under 16 250
Adults 2,750
Not in the Labor Force 450
In the Labor Force 2,300 83.6%
Labor Force Participation Rate
Labor Force ÷ Adults
Employed 2,070

115. Population 3,000
Under 16 250
Adults 2,750
Not in the Labor Force 450
In the Labor Force 2,300 83.6%
Labor Force Participation Rate
Labor Force ÷ Adults
Employed 2,070

116. Population 3,000
Under 16 250
Adults 2,750
Not in the Labor Force 450
In the Labor Force 2,300 83.6%
Labor Force Participation Rate
Labor Force ÷ Adults
Employed 2,070

117. Population 3,000
Under 16 250
Adults 2,750
Not in the Labor Force 450
In the Labor Force 2,300 83.6%
Labor Force Participation Rate
Labor Force ÷ Adults
Employed 2,070
Unemployed

118. Population 3,000
Under 16 250
Adults 2,750
Not in the Labor Force 450
In the Labor Force 2,300 83.6%
Labor Force Participation Rate
Labor Force ÷ Adults
Employed 2,070
Unemployed 230

119. Population 3,000
Under 16 250
Adults 2,750
Not in the Labor Force 450
In the Labor Force 2,300 83.6%
Labor Force Participation Rate
Labor Force ÷ Adults
Employed 2,070
Unemployed 230 10.0%

120. Population 3,000
Under 16 250
Adults 2,750
Not in the Labor Force 450
In the Labor Force 2,300 83.6%
Labor Force Participation Rate
Labor Force ÷ Adults
Employed 2,070
Unemployed 230 10.0%
Unemployment Rate
Unemployed ÷ Labor Force

121. Calculating Unemployment Rates

122. Calculating Unemployment Rates
The unemployment rate is 10% and there
are 4,500 people employed. What is the
number unemployed?

123. Calculating Unemployment Rates
The unemployment rate is 10% and there
are 4,500 people employed. What is the
number unemployed?

124. Calculating Unemployment Rates
Employed
The unemployment rate is 10% and there
are 4,500 people employed. What is the
number unemployed?

125. Calculating Unemployment Rates
Employed
+ Unemployed
The unemployment rate is 10% and there
are 4,500 people employed. What is the
number unemployed?

126. Calculating Unemployment Rates
Employed
+ Unemployed
= Labor Force
The unemployment rate is 10% and there
are 4,500 people employed. What is the
number unemployed?

127. Calculating Unemployment Rates
Employed
+ Unemployed
= Labor Force
#
The unemployment rate is 10% and there
are 4,500 people employed. What is the
number unemployed?

128. Calculating Unemployment Rates
Employed
+ Unemployed
= Labor Force
# %
The unemployment rate is 10% and there
are 4,500 people employed. What is the
number unemployed?

129. Calculating Unemployment Rates
Employed
+ Unemployed
= Labor Force
# %
100%
The unemployment rate is 10% and there
are 4,500 people employed. What is the
number unemployed?

130. Calculating Unemployment Rates
Employed
+ Unemployed
= Labor Force
# %
100%
The unemployment rate is 10% and there
are 4,500 people employed. What is the
number unemployed?
10%

131. Calculating Unemployment Rates
Employed
+ Unemployed
= Labor Force
# %
100%
The unemployment rate is 10% and there
are 4,500 people employed. What is the
number unemployed?
10%
90%

132. Calculating Unemployment Rates
Employed
+ Unemployed
= Labor Force
# %
100%
The unemployment rate is 10% and there
are 4,500 people employed. What is the
number unemployed?
10%
90%4,500

133. Calculating Unemployment Rates
Employed
+ Unemployed
= Labor Force
# %
100%
The unemployment rate is 10% and there
are 4,500 people employed. What is the
number unemployed?
10%
90%4,500
4,500 ÷ .90 = 5,000

134. Calculating Unemployment Rates
Employed
+ Unemployed
= Labor Force
# %
100%
The unemployment rate is 10% and there
are 4,500 people employed. What is the
number unemployed?
10%
90%4,500
5,000
4,500 ÷ .90 = 5,000

135. Calculating Unemployment Rates
Employed
+ Unemployed
= Labor Force
# %
100%
The unemployment rate is 10% and there
are 4,500 people employed. What is the
number unemployed?
10%
90%4,500
5,000
500
4,500 ÷ .90 = 5,000

136. Calculating Unemployment Rates
Employed
+ Unemployed
= Labor Force
# %
100%
The unemployment rate is 10% and there
are 4,500 people employed. What is the
number unemployed?
10%
90%4,500
5,000
500
4,500 ÷ .90 = 5,000

137. Calculating Unemployment Rates

138. Calculating Unemployment Rates
The unemployment rate is 5% and there are
2,500 people unemployed. What is the
number employed?

139. Calculating Unemployment Rates
The unemployment rate is 5% and there are
2,500 people unemployed. What is the
number employed?

140. Calculating Unemployment Rates
Employed
The unemployment rate is 5% and there are
2,500 people unemployed. What is the
number employed?

141. Calculating Unemployment Rates
Employed
+ Unemployed
The unemployment rate is 5% and there are
2,500 people unemployed. What is the
number employed?

142. Calculating Unemployment Rates
Employed
+ Unemployed
= Labor Force
The unemployment rate is 5% and there are
2,500 people unemployed. What is the
number employed?

143. Calculating Unemployment Rates
Employed
+ Unemployed
= Labor Force
#
The unemployment rate is 5% and there are
2,500 people unemployed. What is the
number employed?

144. Calculating Unemployment Rates
Employed
+ Unemployed
= Labor Force
# %
The unemployment rate is 5% and there are
2,500 people unemployed. What is the
number employed?

145. Calculating Unemployment Rates
Employed
+ Unemployed
= Labor Force
# %
100%
The unemployment rate is 5% and there are
2,500 people unemployed. What is the
number employed?

146. Calculating Unemployment Rates
Employed
+ Unemployed
= Labor Force
# %
100%
The unemployment rate is 5% and there are
2,500 people unemployed. What is the
number employed?
5%

147. Calculating Unemployment Rates
Employed
+ Unemployed
= Labor Force
# %
100%
The unemployment rate is 5% and there are
2,500 people unemployed. What is the
number employed?
5%2,500

148. Calculating Unemployment Rates
Employed
+ Unemployed
= Labor Force
# %
100%
The unemployment rate is 5% and there are
2,500 people unemployed. What is the
number employed?
5%
95%
2,500

149. Calculating Unemployment Rates
Employed
+ Unemployed
= Labor Force
# %
100%
The unemployment rate is 5% and there are
2,500 people unemployed. What is the
number employed?
5%
95%
2,500
2,500 ÷ .05 = 50,000

150. Calculating Unemployment Rates
Employed
+ Unemployed
= Labor Force
# %
100%
The unemployment rate is 5% and there are
2,500 people unemployed. What is the
number employed?
5%
95%
50,000
2,500
2,500 ÷ .05 = 50,000

151. Calculating Unemployment Rates
Employed
+ Unemployed
= Labor Force
# %
100%
The unemployment rate is 5% and there are
2,500 people unemployed. What is the
number employed?
5%
95%47,500
50,000
2,500
2,500 ÷ .05 = 50,000

152. Calculating Unemployment Rates
Employed
+ Unemployed
= Labor Force
# %
100%
The unemployment rate is 5% and there are
2,500 people unemployed. What is the
number employed?
5%
95%47,500
50,000
2,500
2,500 ÷ .05 = 50,000

153. Calculating Unemployment Rates

154. Calculating Unemployment Rates
The unemployment rate is 3% and there are 19,400
people employed. There are 30,000 adults. What is
labor force participation rate?

155. Calculating Unemployment Rates
The unemployment rate is 3% and there are 19,400
people employed. There are 30,000 adults. What is
labor force participation rate?

156. Calculating Unemployment Rates
Employed
The unemployment rate is 3% and there are 19,400
people employed. There are 30,000 adults. What is
labor force participation rate?

157. Calculating Unemployment Rates
Employed
+ Unemployed
The unemployment rate is 3% and there are 19,400
people employed. There are 30,000 adults. What is
labor force participation rate?

158. Calculating Unemployment Rates
Employed
+ Unemployed
= Labor Force
The unemployment rate is 3% and there are 19,400
people employed. There are 30,000 adults. What is
labor force participation rate?

159. Calculating Unemployment Rates
Employed
+ Unemployed
= Labor Force
#
The unemployment rate is 3% and there are 19,400
people employed. There are 30,000 adults. What is
labor force participation rate?

160. Calculating Unemployment Rates
Employed
+ Unemployed
= Labor Force
# %
The unemployment rate is 3% and there are 19,400
people employed. There are 30,000 adults. What is
labor force participation rate?

161. Calculating Unemployment Rates
Employed
+ Unemployed
= Labor Force
# %
100%
The unemployment rate is 3% and there are 19,400
people employed. There are 30,000 adults. What is
labor force participation rate?

162. Calculating Unemployment Rates
Employed
+ Unemployed
= Labor Force
# %
100%
The unemployment rate is 3% and there are 19,400
people employed. There are 30,000 adults. What is
labor force participation rate?
3%

163. Calculating Unemployment Rates
Employed
+ Unemployed
= Labor Force
# %
100%
The unemployment rate is 3% and there are 19,400
people employed. There are 30,000 adults. What is
labor force participation rate?
3%
97%

164. Calculating Unemployment Rates
Employed
+ Unemployed
= Labor Force
# %
100%
The unemployment rate is 3% and there are 19,400
people employed. There are 30,000 adults. What is
labor force participation rate?
3%
97%19,400

165. Calculating Unemployment Rates
Employed
+ Unemployed
= Labor Force
# %
100%
The unemployment rate is 3% and there are 19,400
people employed. There are 30,000 adults. What is
labor force participation rate?
3%
97%19,400
19,400 ÷ .97 = 20,000

166. Calculating Unemployment Rates
Employed
+ Unemployed
= Labor Force
# %
100%
The unemployment rate is 3% and there are 19,400
people employed. There are 30,000 adults. What is
labor force participation rate?
3%
97%19,400
20,000
19,400 ÷ .97 = 20,000

167. Calculating Unemployment Rates
Employed
+ Unemployed
= Labor Force
# %
100%
The unemployment rate is 3% and there are 19,400
people employed. There are 30,000 adults. What is
labor force participation rate?
3%
97%19,400
20,000
600
19,400 ÷ .97 = 20,000

168. Calculating Unemployment Rates
Employed
+ Unemployed
= Labor Force
# %
100%
The unemployment rate is 3% and there are 19,400
people employed. There are 30,000 adults. What is
labor force participation rate?
3%
97%19,400
20,000
600
19,400 ÷ .97 = 20,000
20,000 ÷ 30,000 = .67 or 67%

169. Calculating Unemployment Rates
Employed
+ Unemployed
= Labor Force
# %
100%
The unemployment rate is 3% and there are 19,400
people employed. There are 30,000 adults. What is
labor force participation rate?
3%
97%19,400
20,000
600
19,400 ÷ .97 = 20,000
20,000 ÷ 30,000 = .67 or 67%

170. Structural
Unemployment

171. Structural
Unemployment
Creative
Destruction

172. Structural
Unemployment
Creative
Destruction
10% a year

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

174. Unemployment
Insurance

175. Unemployment
Insurance
Unintended Consequence

176. Unemployment
Insurance
Unintended Consequence
Moral Hazard

177. Unemployment
Insurance
Unintended Consequence
Moral Hazard
May prolong unemployment

178. Minimum Wage Laws

179. Minimum Wage Laws
Government sets a
minimum wage that can
legally be paid

180. Minimum Wage Laws
Government sets a
minimum wage that can
legally be paid

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

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

183. $0
$5
$10
$15
$20
0 10 20 30 40 50 60
Wage
Workers

184. $0
$5
$10
$15
$20
0 10 20 30 40 50 60
Demand
Wage
Workers

185. $0
$5
$10
$15
$20
0 10 20 30 40 50 60
Supply
Demand
Wage
Workers

186. $0
$5
$10
$15
$20
0 10 20 30 40 50 60
Supply
Demand
Wage
Workers

187. $0
$5
$10
$15
$20
0 10 20 30 40 50 60
Supply
Demand
Wage
Workers

188. $0
$5
$10
$15
$20
0 10 20 30 40 50 60
Supply
Demand
Wage
Workers

189. $0
$5
$10
$15
$20
0 10 20 30 40 50 60
Supply
Demand
Wage
Workers
Equilibrium
Wage
30 workers
30 jobs
no
unemployment

190. $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

191. $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

192. $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

193. $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

194. $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

195. $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

196. Efficiency Wages

197. Efficiency Wages
Higher wages make more
productive employees

198. Efficiency Wages
Higher wages make more
productive employees

199. Efficiency Wages

200. Efficiency Wages
Employee
Bob
Bill

201. Efficiency Wages
Employee
Bob
Bill
Wage
$10
$20

202. Efficiency Wages
Employee
Bob
Bill
Wage
$10
$20
Pizzas
5
12

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

204. Efficiency Wages

205. Efficiency Wages
More Healthy

206. Efficiency Wages
More Healthy
Lower Turnover

207. Efficiency Wages
More Healthy
Lower Turnover
Higher Quality

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