Types of unemployment

Вопросы к экзамену.

Дисциплина «Экономическая теория» - Макроэкономика.

1. Meaning and goals of macroeconomic.

2. Gross National Product / Gross Domestic Product.

3. GDP: expenditures and income approaches.

4. GDP and economic Well-being.

5. System of national accounts.

6. Unemployment. Measurement of unemployment.

7. Types of unemployment.

8. Levels of unemployment. “Full-employment”.

9. Economic costs of unemployment.

10.  Inflation: meaning and measurement. “rule of 70”.

11. Types of inflation.

12. Effects of inflation.

13. Phases of the business cycle.

14. Reasons and results of business cycles.*

15. Economic growth: definition and ingredients.

16.  The theories of economic growth.

17. Aggregate demand (AD). AD curve.(*дорисовать)

18.  Determinants of AD.

19. Aggregate supply (AS); Determinants of AS.

20. Segments of AS curve.

21. AS: the Keynesian vs. Classical Debate.

22. Equilibrium - classical model. Ratchet effect.

23. Consumption and Saving.

24. Investment. Investment demand curve.

25. Equilibrium GDP: Expenditures – Output approach.*

26. Multiplier effect of Investment.

27. Equilibrium GDP: Leakage – Injections.

28. Recessionary Gap.

29. Inflationary Gap.

30. Fiscal Policy: meaning, tools, goals.

31. Multiplier effect of Taxation. Multiplier effect of Government Purchases.*

32. Discretionary Fiscal Policy.

33. Cases of discretionary fiscal policy: expansionary and contractionary policy.

34. Nondiscretionary Fiscal Policy. Built-in stabilizers.

35. Problems and complications of fiscal policy.*

36.  Money: functions and types.

37.  Supply for money.

38. The role of banking sector.

39.  Money – creation system. Money multiplier.

40.  Monetary policy: goals and instruments.

41.  Types of monetary policy.

42.  Effectiveness of monetary policy.

43.  “IS –LM” model: equilibrium.

44.  The Phillips curve.

45.  The adaptive and rational expectations theories.

46.  Supply – side economics. Laffer curve.

47.  International trade. Comparative advantage.

48. International trade: trade barriers.

49.  International trade: cases and costs of protection.*

50.  The balance of payments.

51.  Exchange rates: types.

52.  International exchange – rate systems.

53.  Privatization: essence, stages.(?)

54.  The investment policy of Russia.*

 

 

* - доделать, дорисовать.

 

 

Meaning and goals of macroeconomic.

Macroeconomics - is a branch of economics dealing with the performance, structure, behavior, and decision-making of the whole economy. This includes a national, regional, or global economy.

Goals:

• Low Unemployment

• Price Stability

• Economic Growth

• Complementary and conflicting goals

 

Gross National Product / Gross Domestic Product.

GNP - Cost of the final goods/services for a year, is the property of citizens of this country.

GDP - Cost of the final goods/services made in territory of one country, is used by citizens of the country and foreigners.

GDP: expenditures and income approaches.

Expenditures approach:

GDP = C+I+G+Xn

C – personal consumption expenditures

I – gross private investment

G – Government purchases

Xn – net export

Consumption expenditures: Personal consumption expenditures on goods and services comprise the largest share of total expenditure. Consumption good expenditures include purchases of nondurable goods, such as food and clothing, and purchases of durable goods, such as appliances and automobiles. Consumption service expenditures include purchases of all kinds of personal services, including those provided by barbers, doctors, lawyers, and mechanics.

 

Investment expenditures: Investment expenditures can be divided into two categories: expenditures on fixed investment goods and inventory investment. Fixed investment goods are those that are useful over a long period of time. Inventory goods are final goods waiting to be sold that firms have on hand at the end of the year.

 

Government expenditures: Government expenditures on consumption and investment goods and services are treated as a separate category in the expenditure approach to GDP.

 

Net exports: Exports are goods and services produced domestically but sold to foreigners, while imports are goods and services produced by foreigners but sold domestically.

 

Income approach

GDP = W+R+I+Pr+T+A

Wage includes payments by employers into social insurance, person, health funds for workers.

Rent consists of payments received by suppliers of property resources.

Interest money – income payments flowing from private businesses to suppliers of money.

Proprieties income – net income of unincorporated businesses.

Taxes

 

4. GDP and economic Well-being.

GDP - Cost of the final goods/services made in territory of one country, is used by citizens of the country and foreigners.

System of national accounts.

NAS - The system of expenses and incomes which help to understand results of economic activities and to apply measures to regulation of economy.

Gages

-Stocks - that are in economy at present.

-Streams - movement of resources in a time unit.

 

Indicators.

-GNP - Cost of the final goods/services for a year, is the property of citizens of this country.

-GDP - Cost of the final goods/services made in territory of one country, is used by citizens of the country and foreigners.

 

Unemployment. Measurement of unemployment.

Unemployment, as defined by the INTERNATIONAL LABOR ORGANIZATION occurs when people are without jobs and they have actively looked for WORK within the past four weeks.

 

The unemployment rate is the number if people who are unemployed (actively seeking employment but unable to find work) expressed as a percentage of the total labor force («the economically active population»)

 

Types of unemployment.

Frictional Unemployment - фрикционная

- consists of those searching for jobs or wanting to take jobs soon.

-it is regarded as somewhat desirable, because it indicated that there is mobility as people change or seek jobs.

REASONS:

- Some workers will be voluntary moving from one job to another;

- Others will have been fired and will be seeking reemployment

- others will be temporarily laid off from their jobs because of seasonality

- young workers will seek for their first job

 

Structural - структурная

Definition - die to changes in the structure of demand for labor: e.g., when certain skills become obsolete or geographic distribution of jobs changes;

EXAMPLE - Glass blowers were replaced by bottle-making machines.

 

Cyclical - циклическая

is caused by the recession phase of the business cycle, which is sometimes called deficient demand unemployment