Booklet 3 - Macro Flashcards
Definition - Claimant court
Number of people currently claiming job seekers allowance
Definition - LFS / ILO
The labour force survey of 60,000 households identifying the number of people out of work, as this uses the international labour organisation methodology, this is internationally comparable
Definition - unemployment
People who are actively seeking employment at the current wage rate but unable to find it
Definition - underemployment
Employed but don’t work as many hours as they would like or not using their skills effectively
Definition - economically inactive
People who are unwilling to work at the current wage rate or unable to
Definition - frictional or job search unemployment
People between jobs because they just left a job or just became economically inactive
- recent graduates
Definition - seasonal unemployment
Demand for some labour only exists certain times of year
- ski reps
Definition - structural unemployment
Caused by a change in the economy, demand for labour no longer exists
- miners
Definition - technological unemployment
Workers replaced by machinery
- checkout workers
Definition - cyclical/keynesian/demand-deficient
Caused by a lack of AD, unemployment by a recession
Definition - classical/real-wage unemployment
Caused by high wages for the labour market to clear
- unemployment from minimum wage
Definition - geographical immobility of labour
Workers cannot relocate to where there is demand for their labour
Definition - occupational immobility of labour
Workers cannot switch to another job, lack transferable skills
Definition - inflation
A sustained increase in the general level of prices
- UK 2022
Definition - deflation
A sustained decrease in the general level of prices
- Japan 1990s
Definition - disinflation
A fall in the rate of inflation (prices rising but more slowly)
Definition - core inflation
Inflation measured without the most volatile prices
Definition - hyperinflation
Very high inflation, typically in excess of 100% per annum/year
- Zimbabwe
Definition - anticipated inflation
Inflation that economic agents expect and factor into their decisions
Definition - unanticipated inflation
Inflation that is higher than economic agents expectations
Definition - basket of goods
Collection of goods and services which are tracked to calculate inflation with the consumer price index
Definition - demand-pull inflation
Inflation caused by an increase in aggregate demand
Definition - cost-push inflation
Inflation caused by rising costs of production
Definition - benign deflation
A fall in the general price level which is caused by falling costs which acts as a boost to real incomes
