9.3 Employment_unemployment

Question 1

Labour productivity

Answer 1

output per worker hour

Question 2

Unemployment

Answer 2

the state of being willing and able to work but without a job

Question 3

Full employment

Answer 3

the level of employment corresponding to where all who wish to work have found jobs, excluding frictional unemployment.

Question 4

Natural rate of unemployment

Answer 4

the rate of unemployment that exists when the aggregate demand for labour equals the aggregate supply of labour at current wage rate and price level

Question 5

Frictional unemployment

Answer 5

unemployment that is temporary and arises where people are in between jobs

Question 6

Structural unemployment

Answer 6

unemployment caused as a result of the changing structure of economic activity

Question 7

Cyclical unemployment

Answer 7

unemployment that results from a lack of aggregate demand

Question 8

Claimant count

Answer 8

a measure of unemployment based on those claiming unemployment benefits

Question 9

Labour force survey

Answer 9

a measure of unemployment based on a survey that identifies people who are actively seeking a job

Question 10

Hysteresis

Answer 10

unemployment causing unemployment due to workers becoming deskilled and demotivated when they are out of work for a long time.