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Macro 9
This document discusses macroeconomics, finance, unemployment, and labor force statistics. It defines key terms like the Dow Jones Industrial Average, future value, present value, unemployment rate, labor force participation rate. It explains that the unemployment rate is calculated by dividing the number of unemployed by the labor force. The Bureau of Labor Statistics measures unemployment through surveys to track employment, unemployment, and those not in the labor force.
Macro 9
- 2.
- 3. Quiz Name two companiesin the DJIA.
- 4. Dow Jones IndustrialAverage DJIA 30 leading companies
- 5.
- 6. Finance Time - tor n Risk - r or i
- 7. Foundation Finance Formula (1 +r ) n r = risk rate n = time periods
- 8. FutureValue? Future Value =Amount Today x Factor Factor is the Growth Formula (1 + r ) n r = rate n = time periods
- 9. FutureValue? (1 + r) n r = 10% or 0.10 n = 5 years (1 + 0.10)5 (1.10)5 1.61
- 10. FutureValue? Amount Today xFactor = Future Value $100 x 1.61 = $161 Future Value is compounding Future Value is multiplying
- 11. PresentValue? Future Amount ÷Factor = Present Value $100 ÷ 1.61 = $62.11 Present Value is discounting Present Value is dividing
- 12. Finance Unknown - PresentValue or Future Value? Must know rate and number of periods Compute Factor with formula (1+r)n If FV multiply If PV divide
- 13. Present Future x Factor? ÷ Factor ? Factor Formula = (1 + r ) n
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- 15. What kind of unemployment iscaused by smartphones?
- 16. Unemployment Who measures it? Howis it measured?
- 17. Unemployment Rate Labor Force ParticipationRate Rate are Ratios
- 18. Who Measures? Department ofLabor Bureau of Labor Statistics
- 19. Two Surveys The CurrentPopulation Survey (CPS) "household survey" Sample of 60,000 households. The Current Employment Statistics Survey (CES): "payroll survey" sample of 160,000 businesses and government agencies that represent 400,000 individual employees.
- 20. Adults 16+ Everybody 320100% 16+ 254 80% Under 16 66 20%
- 21. Adult Category 16+ 254100% Not in Labor Force 94 37% In Labor Force 160 63%
- 22. Not in LaborForce not employed discouraged workers full-time student homemaker military retiree
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- 24. Discouraged Worker People whowould like to work but have given up looking for a job
- 25. Labor Force Adults 16+who have jobs or are looking for jobs. Employed + Unemployed
- 26. Labor Force Participation Rate Thepercent of the Adult Population that is in the Labor Force
- 28. 1945 1950 19551960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 Year 0N 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 Year 0 20 40 60 Shareofthecivilianlaborforce(%) Men Women
- 29. Labor Force Total 160100% Employed 152.3 95.2% Unemployed 7.7 4.8%
- 30. Employed paid employees work inown business unpaid workers in family business full-time and part-time jobs but temporary absence
- 31. Unemployed not employed available tried tofind a job in the last four weeks waiting to be recalled from layoff
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- 33. 16+ 79% Under 16 21% U.S Population millions% Under 16 66 21% 16+ 254 79% Total 320 100%
- 34. Unemployed 7.7 million 3% Employed152.3 million 60% Not in Labor Force 94 million 37% Adult Population
- 35. Unemployed 7.7 million 5% Employed152.3 million 95% Labor Force
- 36. millions % Population % Adults % Labor Force Population 320100% Age under 16 66 20% Age 16+ 254 80% 100% Not in Labor Force 94 30% 37% In Labor Force 160 50% 63% 100% Employed 152.3 47.6% 60% 95.2% Unemployed 7.7 2.4% 3% 4.8%
- 37. Problems Overstate - Aboveactual Cash workers Understate - Below actual Discouraged workers