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14 Cards in this Set
- Front
- Back
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LABOR- FORCE |
the supply of workers which consists of people who are either employed |
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LABOR-FORCE PARTICIPATION RATE |
ratio of the labor force to the working-age population |
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UNEMPLOYMENT RATE |
number of unemployed workers as a fraction of the labor force |
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LABOR PRODUCTIVITY |
measure of productivity per worker, calculated as output divided by the number of hours worked |
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TOTAL FACTOR PRODUCTIVITY (TFP) |
measure of productivity that explains changes in output other than those attributes to the amount of labor & capital, which is calculated by estimating the contributions of the quantity of capital & the quantity of labor to total output & then fighting out what is left over |
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BUSINESS CYCLE |
short-term movement of output & other key economic variables around their long-term trends |
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EXPANSION |
state of the economy in which output is rising, along with other key variables such as income & employment |
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PEAK |
end of an expansion when output, income, & employment begin to decline |
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MONETARISTS |
economists who believe that erratic growth of the money supply is the main cause of business cycle |
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KEYNESIANS |
economists who follow the ideas of British economist John Maynard Keynes; they believe that they element in business cycles is the economy's inability to return to equilibrium immediately following a shift in aggregate demand b/c wages & prices are sticky & do not adjust right away |
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AGGREGATE DEMAND |
demand for all goods & services in the economy at a given time |
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CLASSICAL ECONOMISTS |
economists who believe the economy will return to equilibrium quickly w/o the need for government intervention |
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REAL BUSINESS CYCLE THEORY (RBC) |
business cycles caused by shocks to productivity |
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COMPENSATION |
waged & salaries plus benefits earned by workers |
