Term
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Definition
| the number of people currently employed in an economy, either full time or part time |
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Term
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Definition
| the number of people who are actively looking for work but aren't currently employed |
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Term
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Definition
| the sum of employment & unemployment |
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Term
| labor force participation rate |
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Definition
| the percentage of the population aged 16 or older that is in the labor force |
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Term
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Definition
| the percentage of the total number of people in the labor force who are unemployed |
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Term
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Definition
| nonworking people who are capable of working but have given up looking for a job given the state of the job market |
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Term
| marginally attached workers |
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Definition
| would like to be employed & have looked for a job in the recent past but are not currently looking for work |
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Term
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Definition
| the number of people who work part time because they cannot find full-time jobs |
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Term
| the _____, equal to employment plus unemployment, does not include discouraged workers |
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Definition
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Term
| labor statistics do not contain data on _____ |
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Definition
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Term
| the _____ is the percentage of the population age 16 & over in the labor force |
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Definition
| labor force participation rate |
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Term
| the _____ is an indicator of the state of the labor market, not a literal measure of the percentage of workers who can't find jobs |
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Definition
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Term
| the unemployment rate can understate the true level of unemployment because it excludes _____, _____, or underemployed workers |
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Definition
| discouraged workers; marginally attached workers |
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Term
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Definition
| when workers spend time looking for employment |
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Term
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Definition
| unemployment due to the time workers spend in job search |
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Term
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Definition
| unemployment that results when there are more people seeking jobs in a labor market than there are jobs available at the current wage rate |
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Term
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Definition
| wages that employers set above the equilibrium wage rate as an incentive for better employee performance |
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Term
| natural rate of unemployment |
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Definition
| the unemployment rate that arises from the effects of frictional plus structural unemployment |
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Term
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Definition
| the deviation of the actual rate of unemployment from the natural rate |
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Term
| job creation & destruction as well as voluntary job separations lead to _____, time spent looking for work |
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Definition
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Term
| as a result of job creation & destruction, some portion of unemployment - called _____ - is inevitable |
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Definition
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Term
| a variety of factors - minimum wages, unions, _____, & the side effects of public policy - lead to structural unemployment |
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Definition
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Term
| frictional plus structural unemployment equal natural unemployment, yielding a _____ |
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Definition
| natural rate of unemployment |
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Term
| in contrast with the natural rate of unemployment, _____ changes with the business cycle |
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Definition
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Term
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Definition
| the wage rate divided by the price level |
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Term
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Definition
| income divided by the price level |
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Term
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Definition
| increased costs of transactions caused by inflation |
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Term
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Definition
| the real cost of changing a listed price |
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Term
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Definition
| arise from the way inflation makes money a less reliable unit of measurement |
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Term
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Definition
| the interest rate expressed in dollar terms |
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Term
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Definition
| the nominal interest rate minus the rate of inflation |
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Term
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Definition
| the process of bringing the inflation rate down |
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Term
| the _____ & _____ are unaffected by the level of prices |
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Definition
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Term
| inflation imposes real costs on the economy: ______, _____, & _____ |
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Definition
| shoe-leather costs; menu costs; unit-of-account costs |
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Term
| the _____ & the _____ differ due to the inflation rate |
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Definition
| nominal interest rate; real interest rate |
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Term
| _____ is very costly, so policy makers try to avoid getting into situations of high inflation in the first place |
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Definition
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