Chapter 5 Unemployment
LECTURE VIDEO学习视频4:
The economy's natural rate of unemployment refers to the amount of unemployment that the economy normally experiences.
According to multiple surveys, two-thirds to three-quarters of economists generally agree with the statement, "There is a natural rate of unemployment to which the economy tends in the long run.
Natural rate occurs when an economy is in a steady state of “full employment”in theory.
Full employment refers to an economic situation in which all available labor resources are being used in the most efficient way possible.
Full employment does not mean “zero unemployment”. Even in a healthy economy, there should always be a natural rate of 4.8 to 5.6%
The actual unemployment rate fluctuates around the natural rate. Cyclical unemployment is the deviation of actual unemployment from its natural rate.
In recessions, the actual unemployment rate is higher than the natural rate, and cyclical unemployment is positive. In booms, unemployment is below the natural rate and cyclical unemployment is negative.
The unemployment rate is never zero; it fluctuates around the natural rate. There is always unemployment even when the economy is doing well.
The natural rate of unemployment is a combination of frictional and structural unemployment that persists in an efficient, expanding economy when labor and resource markets are in equilibrium.
Frictional unemployment results because it takes time for workers to search for the jobs that best suit their tastes and skills.
Structural unemployment results because the number of jobs available in some labor markets is insufficient to provide a job for everyone who wants one.
PRACTICE 习题4：
Data searching and processing
Find the monthly u-rate in China and U.S. for the last 24 months.
Refer to the data and make a line chart in excel document.
国家统计局：https://data.stats.gov.cn/easyquery.htm?cn=A01
Federal Reserve Economic Data：https://fred.stlouisfed.org/series/UNRATE
提交在EXCEL里面制作的折线图的截图
