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24 Cards in this Set
- Front
- Back
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labor force
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16 yrs. + who are either working or looking for work.
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unemployment rate
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number unemployed as a % of labor force
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discouraged workers
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ppl who drop out of the labor force in frustration b/c the can't find work. NOT counted as unemployed.
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sources of unemployment
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frictional unemployment
seasonal unemployment structural unemployment cyclical unemployment |
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frictional unemployment
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unemployment that occurs b/c job seekers and employers need time to find each other
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seasonal unemployment
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unemployment caused by seasonal changes in the demand for certain kinds of labor.
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structural unemployment
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unemployment b/c the skills demanded by employers dnt match those of the unemployed or b/c the enemployed dnt live where the jobs are.
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cyclical unemployment
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unemployment that fluctuates with the business cycle, increasing during contractions and decreasing during expansions.
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long-term unemployed
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27+ weeks out of work
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full employment
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employment level when there's no cyclical unemployment. 4-6%
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unemployment benefits
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cash transfers to those who lose their jobs and actively seek employment.
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underemployment
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workers over qualified for their jobs ro work fewer hours that they would prefer.
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inflation
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sustained incease in economy's average price level.
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hyperinflation
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very high rate of inflation
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deflation
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sustained decrease in the price level
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disinflation
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reduction in rate of inflation
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2 sources of inflation
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demand-pull inflation
cost-push inflation |
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demand-pull inflation
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sustained rise in the price level caused by a righward shift of AD curve. pulls up price level.
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cost-push inflation
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sustained rise in the price level caused by a leftward shift of the aggregate supply curve. Pushes up price level.
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interest
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dollar amount paid by borrowers to lenders
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interest rate
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amount paid per years as a percentage of the amount borrowed.
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loanable funds
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amount of money people are willing to lend, increases as interest rate rises.
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nominal interest rate
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interest rate expressed in $ of current value as a % of the amount loaned; interest specified on theload agreement.
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real interest rate
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interest rate expressed in $ of constant purchasing power as a % of amount loaned.
= Nominal Interest Rate - Inflation Rate if it's negative, lenders lose purchasing power. |
