Labour market terms

Aggregate demand

total demand for goods and services in an economy.

–AD=C+I+G+(X-M)

Fiscal policy

the use of government spending and taxation to influence a nation's macroeconomic conditions

Monetary policy

refers to the strategies and actions a nation's central bank (such as the Reserve Bank of Australia or the U.S. Federal Reserve) uses to control the money supply, manage interest rates, and stabilize the economy

Labour force participation rate

Labour force/ population over 15 x 100%

Unemployment rate

total unemployed/total labour force x 100

nominal wage

pay received by employees in dollar terms for their contribution to the production process, not adjusted for inflation

real wage

measure of the actual purchasing power of money (nominal wage adjusted for inflation)