Chap. 20- Unemployment
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1. creative destruc- occurs when the introduction of new products and tech-
tion nologies leads to the end of other industries and jobs
2. cyclical unem- unemployment caused by economic downturns
ployment
3. frictional unem- unemployment caused by delays in matching available
ployment jobs and workers
4. full employment also called potential output or potential GDP, is the output
output level produced in an economy when the unemployment
rate is equal to the natural rate. Also called potential output
or potential GDP
5. labor force includes people who are already employed or actively
seeking work and are part of the work-eligible population
1/3
Study online at https://quizlet.com/_ag6ci5
1. creative destruc- occurs when the introduction of new products and tech-
tion nologies leads to the end of other industries and jobs
2. cyclical unem- unemployment caused by economic downturns
ployment
3. frictional unem- unemployment caused by delays in matching available
ployment jobs and workers
4. full employment also called potential output or potential GDP, is the output
output level produced in an economy when the unemployment
rate is equal to the natural rate. Also called potential output
or potential GDP
5. labor force includes people who are already employed or actively
seeking work and are part of the work-eligible population
1/3
