ECON 100: Unemployment and Inflation

These flashcards cover key vocabulary terms and concepts related to unemployment and inflation as discussed in ECON 100.

Working Age Population

People who are aged 16 and older.

Employment

The total number of people aged 16 and older currently employed, either full time or part time.

Unemployment

The total number of people who are actively looking for work but aren’t currently employed.

Labor force

The sum of employment and unemployment.

Employment rate

The percent of the total number of people in the labor force who are employed.

Unemployment rate

The percent of the total number of people in the labor force who are unemployed.

Labor force participation rate

The percentage of adults (people 16 and older) in the labor force.

Frictional Unemployment

Short-term unemployment due to people transitioning between jobs or entering the workforce.

Structural Unemployment

Long-term unemployment due to changes in the economy, such as technological advancements.

Cyclical Unemployment

Unemployment caused by a downturn in the business cycle (e.g., recessions).

Natural rate of unemployment

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

Discouraged Workers

Those who have given up looking for a job because there are no jobs available.

Marginally Attached Workers

Those who looked for work in the past but are not currently looking.

Underemployed

Those who would like to work full time but are currently working part time.

Minimum wage

A government-mandated floor on the wage rate.

Economic growth and unemployment

During economic expansion, the unemployment rate usually falls but not always.

Inflation costs

The economic costs of inflation include various factors that create winners and losers.

Job creation vs job destruction

Jobs are constantly being created and destroyed even in the best economic times.