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25 Cards in this Set

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Unemployment
The percentage of the labor force that is not working
Labor Force
All of those actively looking for work and those who have a job.
Labor Force Participation Rate
The percentage of non-institutionalized working age individuals who are employed or seeking employment.
Discouraged Worker
Workers who have stopped looking because they believe their efforts are futile.
Underemployment
The employment of workers in jobs that do not utilize their productive potential
Seasonal Unemployment
A product of regular, recurring change in the hiring needs of of certain indutries on a monthly basis
Structural unemployment
A product of technological change and other changes in the structure of the economy
Cyclical Unemployment
A product of business cycle fluctuations
Frictional Unemployment
A product of the short-term movement of workers between jobs and of first time job seekers
Classical (Disequilibrium) Unemployment
A product of high minimum wages and/or inflexible labor markets and/or generous unemployment benefits
Natural Rate of Unemployment
The unemployment rate that would exist in the absence of cyclical and seasonal unemployment.
Potential Real GDP
National economic output at natural rate of unemployment.
Inflation
A sustained rise in the average level of prices
Deflation
A sustained fall in the average level of prices
Nominal interest rate
the obsered rate of interest in the market
Real interest rate
the nominal rate of interest minus the rate of inflation.
Hyperinflation
an extermely high rate of inflation.
Price Index
The costs of today's market basket of goods expressed ias a % of costs of the same market basic during a base year.
CPI
A tool to measure the inflation rate based on the weighted average of the prices of a basket of commonly consumed goods.
PPI
A tool to measure the inflation rate based on the weighted average of the prices of a basket of goods used by producers.
GDP Deflator
A price index measuring the changes in prces of all new goods and services produced in the economy
Menu Costs
The costs of inflation due to recalculating prices and printing new price lists
Shoe Leather Costs
The costs of inflation due to the extra effort spent managing money (eg, going to the bank more often).
COLAs
Cost of Living Adjustments. Automatic alterations of a persons pay such that it changes with the rate of inflation.
NAIRU
Non Accelerating Inflation Rate of Unemployment---the inflation rate of a country if there were no cyclical unemployment