Unemployment and Inflation

These flashcards cover key concepts related to unemployment and inflation, including definitions and explanations of various terms relevant to macroeconomics.

Unemployment Rate

Percentage of the labour force that is unemployed.

Labour Force Participation Rate (LFPR)

Measures what fraction of working-age people are actively in the labour market.

Frictional Unemployment

Short-term unemployment arising from the process of matching workers with jobs.

Structural Unemployment

Unemployment from a mismatch between workers' skills and job requirements.

Cyclical Unemployment

Unemployment caused by recession during business cycles.

Seasonal Unemployment

Unemployment due to seasonal factors such as weather or calendar patterns.

Labour Force Survey (LFS)

Monthly survey conducted by Statistics Canada to estimate employment and unemployment.

Efficiency Wage

A wage above the market-clearing level that firms pay to increase productivity.

Consumer Price Index (CPI)

Measures the average change over time in the prices paid by households for goods and services.

Producer Price Index (PPI)

An average of the prices received by producers of goods and services at all stages of production.

Nominal Interest Rate

The stated interest rate on a loan.

Real Interest Rate

Nominal interest rate adjusted for inflation.

Natural Rate of Unemployment

The normal rate of unemployment due to frictional and structural factors.

Employment-Population Ratio

Percentage of the working-age population that is employed.

Discouraged Workers

Individuals who have stopped looking for work but would take a job if offered one.

Inflation Rate

The percentage increase in the price level from one year to the next.

What is Unemployment Rate?

Percentage of the labour force that is unemployed.

What does Labour Force Participation Rate (LFPR) measure?

Measures what fraction of working-age people are actively in the labour market.

What is Frictional Unemployment?

Short-term unemployment arising from the process of matching workers with jobs.

What is Structural Unemployment?

Unemployment from a mismatch between workers' skills and job requirements.

What is Cyclical Unemployment?

Unemployment caused by recession during business cycles.

What is Seasonal Unemployment?

Unemployment due to seasonal factors such as weather or calendar patterns.

What is the Labour Force Survey (LFS)?

Monthly survey conducted by Statistics Canada to estimate employment and unemployment.

What is Efficiency Wage?

A wage above the market-clearing level that firms pay to increase productivity.

What is the Consumer Price Index (CPI)?

Measures the average change over time in the prices paid by households for goods and services.

What is the Producer Price Index (PPI)?

An average of the prices received by producers of goods and services at all stages of production.

What is the Nominal Interest Rate?

The stated interest rate on a loan.

What is the Real Interest Rate?

Nominal interest rate adjusted for inflation.

What is the Natural Rate of Unemployment?

The normal rate of unemployment due to frictional and structural factors.

What is the Employment-Population Ratio?

Percentage of the working-age population that is employed.

Who are Discouraged Workers?

Individuals who have stopped looking for work but would take a job if offered one.

What is the Inflation Rate?

The percentage increase in the price level from one year to the next.