About This Chapter
Below is a sample breakdown of the Understanding Unemployment chapter into a 5-day school week. Based on the pace of your course, you may need to adapt the lesson plan to fit your needs.
|Day||Topics||Key Terms and Concepts Covered|
|Monday||Definition of unemployment rate, how it is measured and causes for changes||Explanation of unemployment; measurement of unemployment and reasons for increases and decreases|
|Tuesday||Types of unemployment||Definitions and differences found among cyclical, frictional and structural unemployment|
|Wednesday||Natural rate of unemployment||Definition of the natural rate of unemployment and how to measure and graph it; portion of the unemployment rate that does not relate to fluctuations in the business cycle|
|Thursday||Expectations, minimum wage and unemployment||Ways that expectations can influence the economy; impact of the minimum wage on unemployment rates|
|Friday||Costs of unemployment; the efficiency wage theory||How to measure the impact of unemployment on the economy; the efficiency wage theory and how wage levels influence employment|
1. 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.
2. Why the Unemployment Rate Decreases and Increases
Policymakers, investors, and consumers watch the monthly unemployment rate with great interest. In this lesson, you'll learn what factors influence the unemployment rate and why the rate can change rapidly from month to month.
3. 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.
4. Natural Rate of Unemployment: Definition and Formula
Explore the natural level of employment through the eyes of the Classical School and Keynesian economics, including fiscal policies that may reduce it.
5. Rational Expectations in the Economy and Unemployment
This lesson provides an overview of the theory of rational expectations and then applies it to the labor market, fiscal policy and monetary policy. In the lesson, you'll learn more about expectations and outcomes in a world where people want to maximize profit.
6. Minimum Wage and its Effects on Employment
There are times when the labor market is perfectly balanced between what employers are willing to pay and what workers want in a job. In this lesson, find out what happens to the labor market when governments intervene, imposing a minimum wage.
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Other chapters within the Macroeconomics Syllabus Resource & Lesson Plans course
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- Money, Banking and Financial Markets Lesson Plans
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- Fiscal and Monetary Policies Lesson Plans
- Foreign Exchange and the Balance of Payments Lesson Plans
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