1. Bellringer
1. What are 3 reasons people
lose their jobs?
2. Calculate the GDP per
capita for Travistan where
the GDP is $100 billion and
the population is 10 million
(.01 billion)
3. If the Mexico’s GDP per
capita of $13,360, is
Travistan richer or poorer?
4. Write down the group # you
are sitting in.

4. Why Unemployment?
• You may be
unemployed
• Problem for
society
• Can cause
recessions

5. Think back to US history
• Why was the “Great Depression” so bad?
• How did the government try to fix it?

6. Economic Event’s Name?
Effect on GDP?

7. Unemployment’s effect on GDP
•GDP = C + I + G+ (ExportsImports)
• Lower Consumer Spending
• Lower investments, causes lower capital for
new businesses
• Lower Exports
• Lower Imports
• Lower Government spending because lower
tax revenues

8. Labor Force
• All 16 years and older who can work
• “LF”

9. Not included in Labor Force
•
•
•
•
•
•
•
•
Children
Fulltime Students
Military
Physically Disabled
Mentally Disabled
Prisoners (over 2 million right now!)
Discouraged Workers
Retirees

10. Unemployment Rate Calculation
• Simple calculation
• # unemployed in labor force
• # in labor force
100
Always a %
Higher the % the worse it is for the
country

12. Types of Unemployment
• Why do people lose their jobs?
– Or
• Why can’t they find a new job?

13. Types of unemployment
• Frictional Unemployment
• Time when a person is searching for a job

14. Types of unemployment
• Seasonal Unemployment
• Certain jobs are not year round

15. •
•
•
•
Types of unemployment
Cyclical Unemployment
GDP decline
Job losses caused by business cycle
Layoffs during recessions

16. Types of unemployment
• Structural Unemployment
• Caused by changes to the economy
Changes in taste
technology
Global
Competition
Lack of skills

17. USA Unemployment

18. Arizona’s Unemployment Rate

23. Unemployment types Assignment
1. Divide your paper into fourths
2. Draw a picture or comic to show the four types
of unemployment
3. On the back of the paper, write a few
sentences on how you will guard yourself
against each type of unemployment
• Quantitative Easing: find an article on one of
the unemployment types, cite it and
summarize its findings.

24. GDP Assignment formula
Draw a picture of each of the 4 parts of the GDP
1.
2. Which part of the GDP formula is the largest? (It’s the part
you are the most involved in)
3. How many recessions has Argentina had since 1900?
4. When was their worst one?
5. Why are recessions good for selling inferior goods?
6. Calculate US GDP 2010
Consumers: $12 trillion
Investment: $1.45 trillion
Government: $2 trillion
Exports: $1 trillion
Imports: $2.05 trillion
7. Describe US
Trade (net….?)