About This Chapter
CSET Business - Macroeconomics: Unemployment & Inflation: Chapter Summary
If you're an aspiring business teacher who's preparing for the California Subject Examinations for Teachers (CSET) Business Subtest II, our chapter on unemployment and inflation could be the study tool you've been looking for. The video lessons in this chapter can teach you how to define and measure the unemployment rate, as well as introduce you to the concepts of inflation, deflation and stagflation. Other topics covered in this chapter include the following:
- Effects of inflation on suppliers and demanders
- The Phillips Curve Model and its relation to inflation and unemployment
- Factors that shift the Phillips Curve
- How the supply side of the economy leads to inflation
- The employment participation rate
- Types of unemployment
CSET Business - Macroeconomics: Unemployment & Inflation Objectives
The CSET Business Single Subject Exam is part of the certification process for aspiring high school business teachers in California. One portion of this exam, the CSET Business Subtest II, measures applicants' proficiency in accounting, finance and economics. The 15 economics-focused multiple-choice questions on this subtest can include questions about unemployment and inflation, and these topics also could be covered by one of the test's two brief constructed-response questions.
The video lessons in this chapter on unemployment and inflation can be used as an introduction to the subject or as a refresher going into the CSET Business Subtest II. For questions similar to those you might encounter on the subtest, be sure to complete the self-assessment quizzes that accompany each lesson.
1. Effects of Inflation on Suppliers and Demanders
In this lesson, you'll discover who benefits and who suffers from a sustained increase in prices within an economy. We'll cover the effects of expected and unexpected inflation on savers/creditors and borrowers/debtors.
2. The Phillips Curve Model: Inflation and Unemployment
Can we have low unemployment and low inflation at the same time? Some economists think the answer is no. In this lesson, we'll explore the relationship between inflation and unemployment in the short run, what economists call the Phillips Curve.
3. Factors That Shift the Phillips Curve
Inflation and unemployment are inversely related. In this lesson, discover the factors that lead to a shift in the Phillips Curve by looking at a fictitious economy as an example.
4. Cost-Push Inflation: How the Supply Side of the Economy Leads to Inflation
Learn about cost-push inflation, when higher production prices lead to an increase in prices within the economy. Using real-world examples, this lesson describes what it is, what causes it and how economists illustrate it.
5. Defining and Measuring the Unemployment Rate
You've probably heard about the unemployment rate, especially given how high it was in the 2008 recession. Find out how economists define unemployment, what the unemployment rate is, and how to calculate it in this lesson.
6. Three Types of Unemployment: Cyclical, Frictional & Structural
If you've ever lost your job after the holiday season, you've experienced at least one type of unemployment. In this lesson, explore the three types of unemployment including cyclical, frictional, and structural using real-world examples.
7. Structural Unemployment: Definition, Causes & Examples
Structural unemployment can present a very serious problem to an economy. In this lesson, you'll learn what structural employment is and what causes it, and you'll be provided some examples. You'll also have a chance to take a short quiz.
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Other chapters within the CSET Business Subtest II: Practice and Study Guide course
- CSET Business - Accounting Principles
- CSET Business - Principles of Finance
- CSET Business - Personal Finance
- CSET Business - Economic Concepts
- CSET Business - Microeconomics
- CSET Business - Macroeconomics: General Concepts
- CSET Business - Macroeconomics: Money, Federal Reserve System & Banking
- CSET Business - Macroeconomics: Fiscal and Monetary Policy
- CSET Business - International Economics