Macroeconomics

Macroeconomics is a sub-section of economics which focuses on the behavior of an entire economy, and the actors that exist at that level, such as the Federal Reserve. Looking through this lens, economists observe the financial decisions that manipulate an economy’s elements, such as interest rates, inflation, deflation, and stagflation. Macroeconomics can also explain phenomena that happen on a country-wide scale, such as different types of unemployment, and aggregate supply or demand. It can also be used to describe the current state of an economy, such as a country’s GDP. Economists use macroeconomics to discuss both historical trends and predictions for a certain economy.

Frictional Unemployment

To define frictional unemployment more concisely: it is a form of unemployment that arises due to an economy’s employment transitions. It takes place in a healthy and stable economy with plenty of growth. Workers that create frictional unemployment include those who are changing their jobs and those who are first joining the workforce.

Unemployment

A person is considered to be unemployed if he doesn’t currently doesn’t have a job and is actively searching for one. When we look at the unemployment rate, we consider someone who is actively seeking a job. Otherwise, we do not count them in the labor force.

Seasonal Unemployment

The concept of seasonal unemployment describes a situation when workers experience unemployment at certain times of the year when the demand has decreased. Although unemployment is always problematic, the upside is that seasonal unemployment doesn’t last–eventually, the peak season of a given industry arrives and many workers become employed once again.