occurs when industries slow or shut down for a season or make seasonal shifts in their production schedules.
occurs when people take time to find a job
occurs when workers’ skills do not match the jobs that are available.
5 major causes of structural unemployment:
The development of new technology. The discovery of new resources. Changes in consumer demand. Globalization Lack of education.
unemployment that rises during economic downturns and falls when the economy improves.
the percentage of the nation’s labor force that is unemployed.
the level of employment reached when no cyclical unemployment exists.
working at a job for which they are over-qualified, or working part-time when they desire full-time work.
person who wants a job but has given up looking.
a general increase in prices.
the ability to purchase goods and services.
measurement that shows how the average price of a standard group of goods changes over time.
price index determined by measuring the price of a standard group of goods meant to represent the “market basket” of a typical urban consumer
Consumer price index
a representative collection of goods and services.
the percentage rate of change in price level over time.
the rate of inflation excluding the effects of food and energy prices.
Core inflation rate
inflation that is out of control.
too much money in the economy causes inflation.
inflation occurs when demand for goods and services exceeds existing supplies
Demand pull theory
inflation occurs when producers raise prices in order to meet increased costs.
Cost push theory
the process by which rising wages cause higher prices, and higher prices cause higher wages.
Wage price spiral
income that does not increase even when prices go up.
a sustained or drop in the price level.
the income level below which income is insufficient to support a family or household.
the percentage of people who live in households with income below the official poverty threshold.
how the nation’s total income is distributed among its population
government-issued coupons that recipients exchange for food
illustrates income distribution
area where companies can locate free of certain state, local, and federal taxes and restrictions.
federal funds given to the states in lump sums.
program requiring work in exchange for temporary assistance.