00:01
Okay, so we're tackling a three -part question here, all about unemployment and its relationship to gdp.
00:07
The first part is, how do changes in our unemployment rate vary with changes in the new gdp? so just asking all about this relationship between gdp and unemployment.
00:16
So first, to understand gdp, let's look at what it is.
00:19
So gdp is correlated with our economies a whole.
00:23
So when gdp increases, we're in expansion, and when gdp decreases, we are in a recession.
00:29
Unemployment also varies with changes.
00:30
In our economy.
00:32
When we aren't in periods of expansion, we'll notice our unemployment rate drop.
00:37
And when we're in periods of recession, our unemployment rate will increase.
00:42
So from that, we can already discern our relationship.
00:45
So for this first question, we know that gdp increases, gdp increases, we expand.
00:56
But an expansion also implies a decrease in unemployment.
01:04
So our relationship between the two is pretty clear.
01:09
There's an inverse relationship between gdp unemployment, which we can rewrite right here.
01:14
We can say gdp increase correlates with a decrease in unemployment, or vice versa.
01:22
A gdp decrease correlates with an increase in unemployment.
01:26
So there you go.
01:27
First question down, let's move on.
01:30
Second question.
01:31
After a few quarters of severe recession, explain why we might see a decrease.
01:35
In our official unemployment rate.
01:38
So it's also to do with how we actually calculate our employment rate and our unemployment rate.
01:43
So the employment rate, so the employment rate i'll represent it with a big, our employment rate is the number of employed workers, employed workers over the total workers.
02:02
And this total workers is people who have actively sought work.
02:10
So this total workers is people who have actively sought work, people who have searched for a job or have one...