Labor Market and Interest Rates

This set of flashcards covers key economic concepts related to labor demand and interest rates as discussed in the lecture.

Labor Demand Curve

A graphical representation showing the relationship between the quantity of labor demanded and the wage rate.

Short-term Interest Rates

The interest rates on loans or credits that are typically due within one year.

Long-term Interest Rates

The interest rates on loans or credits that have a repayment period extending beyond one year.

Investment by Firms

The act of businesses allocating resources to purchase capital goods or infrastructure to generate profits.

Unemployment

The situation in which individuals who are capable of working cannot find a job.

Shift to the Right

An increase in labor demand, which can lead to higher employment and wages.

Shift to the Left

A decrease in labor demand, resulting in lower employment and potentially increased unemployment.