Week 3 Flashcards
(7 cards)
1
Q
When wages rise what happens to labour supply (L_s)?
A
2
Q
Wage rigidity and short-run equilibrium
A
3
Q
The natural rate of unemployment
A
a combination of frictional, structural and surplus unemployment. Even a healthy economy will have this level of unemployment because workers are always coming and going, looking for better jobs. This jobless status, until they find that new job, is the natural rate of unemployment.
4
Q
Wage setting curve
A
5
Q
Other factors shifting the wage setting curve
A
6
Q
Frinctional unemployement definition
A
the unemployment which exists in any economy due to people being in the process of moving from one job to another.
7
Q
A
