Chapter 11: Unemployment 1. Define unemployment and the unemployment rate.* 2. Categorize some as employed, unemployed,...

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Chapter 11: Unemployment 1. Define unemployment and the unemployment rate.* 2. Categorize some as employed, unemployed, or not in the labor force. 3. Define discouraged workers and underemployment. 4. Discuss the issues in using unemployment as an economic indicator 5. Interpret the unemployment rate and other labor market statistics.* 6. Describe the causes of unemployment. * 7. Distinguish between frictional, structural, and cyclical unemployment 8. Examine policies that can increase or decrease structural unemployment. 9. Define full employment, natural unemployment rate, and potential GDP. 10. Identify the effect (costs) of Unemployment.* Chapter 12: Inflation 1. Define inflation, deflation, and disinflation.* 2. Describe the Consumer Price Index (CPI) and how it is used to measure inflation 3. Interpret the rate of inflation* 4. State the equation of exchange 5. Explain the assumptions and predictions of the quantity theory of money. 6. Summarize the cause of inflation.* 7. Describe the effects (costs) of inflation; both unexpected and expected * 8. Explain money neutrality. 9. Explain the fisher effect. 10. Identify the cost of deflation and why economists suggest to avoid it. 11. State and explain economists' view of "preferred inflation" Chapter 13: Aggregate Demand/Aggregate Supply Model 1. List the sources of real shocks and Aggregate Demand Shocks 2. Using the AD/AS graph show the effect of positive and negative real shocks on real growth and inflation* 3. Define the short run and long run in the AD/AS model 4. Using the AD/AS graph show the effects of positive and negative AD shocks on real growth and inflation (both short run and long run)* 5. Explain how the economy transitions from a short run shock to a long run equilibrium. Chapter 11: Unemployment 1. Define unemployment and the unemployment rate.* 2. Categorize some as employed, unemployed, or not in the labor force. 3. Define discouraged workers and underemployment. 4. Discuss the issues in using unemployment as an economic indicator 5. Interpret the unemployment rate and other labor market statistics.* 6. Describe the causes of unemployment. * 7. Distinguish between frictional, structural, and cyclical unemployment 8. Examine policies that can increase or decrease structural unemployment. 9. Define full employment, natural unemployment rate, and potential GDP. 10. Identify the effect (costs) of Unemployment.* Chapter 12: Inflation 1. Define inflation, deflation, and disinflation.* 2. Describe the Consumer Price Index (CPI) and how it is used to measure inflation 3. Interpret the rate of inflation* 4. State the equation of exchange 5. Explain the assumptions and predictions of the quantity theory of money. 6. Summarize the cause of inflation.* 7. Describe the effects (costs) of inflation; both unexpected and expected * 8. Explain money neutrality. 9. Explain the fisher effect. 10. Identify the cost of deflation and why economists suggest to avoid it. 11. State and explain economists' view of "preferred inflation" Chapter 13: Aggregate Demand/Aggregate Supply Model 1. List the sources of real shocks and Aggregate Demand Shocks 2. Using the AD/AS graph show the effect of positive and negative real shocks on real growth and inflation* 3. Define the short run and long run in the AD/AS model 4. Using the AD/AS graph show the effects of positive and negative AD shocks on real growth and inflation (both short run and long run)* 5. Explain how the economy transitions from a short run shock to a long run equilibrium.

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Chapter 11 Unemployment Define unemployment and the unemployment rate Unemployment refers to the condition in which individuals who are capable of working available for work and actively seeking emplo... View the full answer