Principles of Macroeconomics - Unemployment

This set of flashcards covers key terms and concepts from the chapter on unemployment in macroeconomics.

Natural Rate of Unemployment

The normal rate of unemployment around which the unemployment rate fluctuates.

Cyclical Unemployment

The deviation of unemployment from its natural rate associated with economic activity fluctuations.

Frictional Unemployment

Unemployment that occurs when workers are searching for jobs that best suit their skills and preferences.

Structural Unemployment

Unemployment resulting from the mismatch between available jobs and skills, often due to longer-term changes.

Discouraged Workers

Individuals who would like to work but have given up looking for a job.

Unemployment Rate

The percentage of the labor force that is unemployed.

Labor Force Participation Rate

The percentage of the adult population that is in the labor force.

Current Population Survey (CPS)

A monthly survey conducted to determine the status of the U.S. labor force.

Efficiency Wages

Wages that are higher than the equilibrium level paid by firms to increase worker productivity.

Collective Bargaining

The process by which unions negotiate with employers over wages, benefits, and working conditions.