CHAPTER 13 TEXTBOOK CARDS

Created by: hayley ashton
Created on: 28-02-13 12:29

3 Ways of measuring unemployment in the UK?

1.Claimant count 2.Labour force survey

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How is the claimant count measured?

People who are eligible to claim job seekers allowance. Excludes people who dont meet all of the eligibility criteria such as over 60's

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How is the Labour Force Survey Measured?

People who have looked for work in the past month and are able to start work in the next two weeks

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Replacement Ratio?

Disposable income out of work divided by disposable income in work

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6 Types of Unemployment?

1.Frictional 2.Casual/seasonal 3.Structural 4.Cyclical 5.Voluntary 6.Involuntary 7.Technological

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2 Consequences of unemployment?

1. Economic consequences 2.Social costs

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3 Benefits of unemployment?

1.Wage rates low for firms 2.Reduce inflationary pressure 3.Reduced environmental damage & pressure on non-renewable resources

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2 Government policies to reduce unemployment?

1.Demand side policies 2.Supply side policies

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3 Demand side policies to reduce unemployment?

1.Fiscal policy to reflate economy by increase government spending and reduce income tax 2.Loosen monetary policy by making credit more available 3.Regional policy to stimulate activity in unemployed regions

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2 Supply side policies to reduce unemployment?

Improved education & vocational training to increase skills 2.Reduce geographical immobility of labour by improving process of job search/databases & ensuring affordable accommodation where jobs are

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What does the Phillips Curve show?

Short run trade off between unemployment and wage inflation (high inflation when low unemployment)

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5 Factors that explain UK's improved trade off between inflation/unemployment?

1.UK labour market flexibility 2.Immigration 3.Setting credible inflation targets 4.Low inflation in global economy 5.Technological change & innovation

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Other cards in this set

Card 2

Front

How is the claimant count measured?

Back

People who are eligible to claim job seekers allowance. Excludes people who dont meet all of the eligibility criteria such as over 60's

Card 3

Front

How is the Labour Force Survey Measured?

Back

Card 4

Front

Replacement Ratio?

Back

Card 5

Front

6 Types of Unemployment?

Back

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CHAPTER 13 TEXTBOOK CARDS