Studied by 0 people
Looks like no one added any tags here yet for you.
What is Frictional Unemployment?
Frictional unemployment refers to the short-term unemployment that occurs when individuals are temporarily between jobs or entering the workforce for the first time.
What is Structural Unemployment?
Structural unemployment occurs when there is a mismatch between the skills of the workforce and the skills needed for available jobs, often due to technological changes or shifts in the economy.
What is Cyclical Unemployment?
Cyclical unemployment refers to the unemployment that results from economic recessions or downturns, occurring when there is not enough demand for goods and services in the economy.
Unemployment
The percentage of the labor force that is actively seeking work but unable to find a job
Unemployment Rate
The percentage of the labor force that is unemployed and actively seeking work
Labor force
The total number of employed and unemployed individuals actively seeking work
Labor force participation rate
The percentage of the working age population that is either employed or actively seeking work
Marginally Attached/Discouraged Workers
Marginally attached workers are individuals who are not currently in the labor force but want to work and have looked for a job in the past year, while discouraged workers have given up actively seeking employment due to a belief that no jobs are available for them.
Natural rate of unemployment
The normal level of unemployment consisting of frictional and structural unemployment, but not cyclical
Shoe leather costs
The costs associated with increased transactions due to inflation, such as people making more trips to the bank
Menu costs
The costs incurred by firms when changing prices, such as updating menus or price tags
Unit off account costs
Costs that arise when inflation makes money a less reliable measure of value
Nominal interest rate
The stated interest rate on a loan or investment, not adjusted for inflation
Real interest rate
The nominal interest rate adjusted for inflation, representing the true cost of borrowing
Market Basket
A fixed collection of goods and services used to measure inflation and price changes
Consumer price index (CPI)
A measure of the overall price level for consumer goods and services
GDP deflator
A price index that adjusts nominal GFP for inflation to reflect real GDP
Final Domestic good value
The price of a finished product that is sold to the final consumer rather than intermediate goods used in production.
Expenditure Method (C+I+G+X)
The calculation of GDP by adding consumer spending (C), investment (I), government spending (G), and net exports (X).
Real GDP
GDP adjusted for inflation, measuring the true growth of an economy
Nominal GDP
GDP measured in current prices, not adjusted for inflation
GDP per Capita
Real GDP divided by the population, measuring the average income per person
Business cycle
The natural rise and fall of economic growth over time, including expansion, peak, contraction, and trough
Recession
A period of economic decline characterized by falling GDP and rising unemployment
Stagflation
A situation where inflation and unemployment rise simultaneously, usually due to supply shocks.
