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18 Cards in this Set
- Front
- Back
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Consumer Price Index (CPI) |
A measure of the average change over time in the prices a typical urban family of four pays for the goods and services they purchase. |
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Cyclical Unemployment |
Unemployment caused by a business cycle recession. |
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Deflation |
A decline in the price level. |
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Discouraged Workers |
People who are available for work but have not looked for a job during the previous four weeks because they believe no jobs are available for them. |
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Efficiency wage |
An above market wage that a firm pays to increase workers' productivity. |
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Frictional unemployment |
Short-term unemployment that arises from the process of matching workers with jobs. |
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Inflation Rate |
The percentage increase in the prices level from one year to the next. |
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Labor Force |
The sum of employed and unemployed workers in an economy. |
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Labor Force Participation Rate |
The percentage of the working age population in the labor force. |
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Menu Costs |
The costs to firms of changing prices. |
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Natural Rate of Unemployment |
The normal rate of unemployment, consisting of frictional unemployment and structural unemployment. The unemployment rate that exists when the economy is at potential GDP. |
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Nominal Interest Rate |
The stated interest rate on a loan. |
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Price Level |
A measure of the average prices of goods and services in the economy. |
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Producer Price Index (PPI) |
An average of the prices received by producers of goods and services at all stages of the production process. |
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Real Interest Rate |
The nominal interest rate minus the inflation rate. |
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Structural Unemployment |
Unemployment that arises form a persistent mismatch between the skills or attributes of workers and the requirements of jobs. |
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Unemployed |
In the government statistic, someone who is not currently at work but who is available for work and who has actively looked for work during the previous month. |
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Unemployment Rate |
The percentage of the labor force that is unemployed. |
