Chapter 9 Flashcards
(20 cards)
Consumer price index (CPI)
A measure of the average of the prices a typical urban family of four pays for the goods and services they purchase
Cyclical unemployment
Unemployment caused by a business cycle recession
Deflation
A decline in the price level
Discouraged workers
People who are available for work but have not looked for a job during the previous four works because they believe no jobs are available for them
Efficiency wage
An above-market wage that a firm pays to increase workers’ productivity
Employed
In government statistics, someone who currently has a job or who is temporarily away from his or her job
Employment-population ratio
The percentage of the working-age population that is employed
Frictional unemployment
Short-term unemployment that arises from the process of matching workers with jobs.
Inflation rate
The percentage increase in the price level from one year to the next
Labor force
The sum of employed and unemployed in the economy
Labor force participation rate
The percentage of the working-age population in the labor force
Menu cost
The costs to firms of changing prices
Natural rate of unemployment
The normal rate of unemployment, consisting of frictional unemployment and structural unemployment
Nominal interest rate
The stated interest rate on a loan
Price level
A measure of the average prices of goods and services in the economy
Producer price index (PPI)
An average of the prices received by producers of goods and services at all stages of the production process
Real interest rate
The nominal interest rate minus the inflation rate
Structural unemployment
Unemployment that arises from a persistent mismatch between the skills or attributes of workers and the requirements of jobs
Unemployed
In government statistics, someone who is not currently employed but who is available for work and who has actively looked for work during the previous month
Unemployment rate
The percentage of the labor force that is unemployed.
