Term
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Definition
| The sum total of all willing and able employed and unemployed workers in the economy. |
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Term
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Definition
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Term
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Definition
| The percentage of the labor force that is unemployed. |
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Term
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Definition
| U/Labor Force = Unemployment |
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Term
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Definition
| People who are available for work but have not looked for a job during the previous four weeks because they believe no acceptable jobs are available. |
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Term
| Labor Force Participation rate |
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Definition
| measures the percentage of the working-age population in the labor force. |
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Term
| labor force participation rate formula: |
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Definition
| (Labor force/working-age population) X 100 |
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Term
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Definition
| Unemployment arising from a persistent mismatch between the skills and characteristics of workers and the requirements of jobs. |
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Term
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Definition
| Unemployment caused by a business cycle recession. |
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Term
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Definition
| the economy is operating to its own capacity, and there is no cyclical job loss. |
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Term
| Natural rate of unemployment |
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Definition
| The normal rate of unemployment, consisting of frictional unemployment plus structural unemployment. |
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Term
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Definition
| organizations of workers that bargain with employers for higher wages and better working conditions for their members. |
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Term
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Definition
| Higher-than-market wage that a firm pays to increase worker productivity. Firms pay more hoping they will get the best people, and get the best from those people. This can reduce turnover and improve operations. |
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Term
| Consumer Price Index (CPI) |
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Definition
| An average of the prices of the goods and services purchased by the typical urban family of four. |
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Term
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Definition
| (Current Year/Base Year) X 100 |
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Term
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Definition
-Substitution bias
-Increase in quality bias
-Outlet bias
-New Product bias |
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Term
| Producer Price Index (PPI) |
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Definition
| An average of the prices received by producers of goods and services at all stages of the production process. |
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Term
| How to correct for the effects of inflation and find the real variable: |
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Definition
| (Nominal Variable/Price Index) X 100 |
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Term
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Definition
| The stated interest rate on a loan |
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Term
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Definition
| The nominal interest rate minus the inflation rate. |
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Term
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Definition
| A decline in the price level. |
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Term
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Definition
| The inflation rate for a given year will be estimated and priced into interest rates and price level increases. |
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Term
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Definition
| The costs to firms of changing prices via reprinting and altering business. Before the internet, rate sheets might be made for a year. Incorrect pricing could lead to losses. |
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Term
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Definition
| If the rate is more or less than anticipated, than some will lose and some will gain. The greater the overall level of inflation, the greater magnitude of unanticipated inflation. |
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