Welcome to IB Economics!

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Transcript Welcome to IB Economics!

Today’s Agenda • • • • • Last question 6 Key diagrams Intro to 2.3 Try out Cerego If time: Exit slip What is unemployment and how is it measured?

I’ll take Macro for 1000!

Explain why, in the monetarist/new classical approach, while there may be short-term fluctuations in output, the economy will always return to the full employment level of output in the long run.

Monetarists believe that in a free market the economy will always move towards its long-run equilibrium. The price level does not change the level of real output.

http://www.s-cool.co.uk/a-level/assets/learn_its/alevel/economics/aggregate-demand and-aggregate-supply/aggregate-supply/2007-12-04_105406.gif

6 Key Diagrams • • • Take a card.

Find your dance diagram partner.

Make diagrams, not war.

Supply & Demand http://thismatter.com/economics/images/total-surplus.gif

LRAS (Monetarists)

PPC http://www.harpercollege.edu/mhealy/ecogif/ppc/ppcbasic.gif

Supply & Demand + Subsidy http://1.bp.blogspot.com/-1dAWC7WchPk/UItFz5ca_9I/AAAAAAAAACo/UdjZJcSkHjg/s1600/Subsidy-on-Sellers.png

LRAS (Keynesians) http://www.s-cool.co.uk/a-level/assets/learn_its/alevel/economics/aggregate-demand-and-aggregate-supply/supply-side-policies/2007-12-04_120319.gif

PEC

Syllabus Item – 92 • • Define the term unemployment.

Explain how the unemployment rate is calculated.

What is unemployment?

For your chosen developed and developing countries… • • • Find out: Rate of unemployment for each country How the unemployment rate is distributed (regions, age groups, ethnic groups, men and women) How the 2 governments define and calculate unemployment * Add this info to the other info you had gathered * For the statistics start with the OECD

How does this quote relate to the unemployment rate?

"There are three kinds of lies: lies, damned lies, and statistics.” -- Mark Twain

Syllabus http://ibeconomics-isd.weebly.com/