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Unemployment : failure to use unavailable resources, particularly labor to produce desired goods and services. population- total amount of people in a country. labor force- number of people in a country that is employed or unemployed. FORMULA: (unemployment rate/ unemployment rate + employment rate) X 100 EMPLOYED:  People who are 16 yrs of age and up with a job (full/part time) 1 hr every two weeks = employed UNEMPLOYED:  People who are 16 yrs and up that don't have a job but are actively searching for a job within the last two weeks. NOT IN LABOR FORCE:  Have kids full time student retirees disabled people homeworkers mentally institutionalized incarcerated  military discouraged workers (people who look for a job, don't get it and stop trying) TYPES OF UNEMPLOYMENT FRICTIONAL: Temporarily unavailable or "in between jobs." Workers are qualified and have transferable skills who are looking for a better opportunity. (ex.  HS ...

Inflation : A general rise in price levels  Inflation Rate = (New price index - Old price index / Old index price) X 100 Reduces purchasing power of money When inflation occurs, each dollar of income will buy fewer goods than ever before Consumer price index (CPI) : measures the cost of market basket goods of a typical urban american family.  More than one item is a market basket of good CPI = ( cost of a market of goods in a given year / cost of a market of goods in a base year) An example would be: 3 CAUSES OF INFLATION: 1. Government prints to much money. 2. Demand for pull inflation - too many dollars chasing too few goods. 3. Cost-push inflation (high production cost that increases prices) ex. Hurricane Harvey. UNANTICIPATED INFLATION HURT by inflation:  Lenders (fixed rate) ex. car dealership, credit union/banking institution, landowner. People who are in a fixed income (people who receive social security or retirement) Savers ...