Term
| To be considered unemployed |
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Definition
person must be available for work and fit in one of three categories:
1) Without work but has made specific efforts to find a job within the previous four weeks
2) Waiting to be called back to a job from which he or she has been laid off
3) Waiting to start a new job within 30 days |
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Term
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Definition
-indicator of the extent to which people who want jobs can't find them
-the percentage of the people in the labor force who are unemployed
(note care for formula) |
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Term
| Labor-force participation rate |
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Definition
-number of people in the labor force is an indicator of the willingness of people of working age to take jobs
-the percentage of the working-age population who are members of the labor force
(note card for formula) |
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Term
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Definition
| the unemployment that arises from the normal entering and leaving the labor force and from the ongoing creation and destruction of jobs |
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Term
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Definition
the unemployment that arises when changes in technology or international competition change the skills needed to perform jobs or change the locations of jobs
-one whose skill are no longer in demand
-lasts longer than frictional unemployment, may be permanent |
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Term
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Definition
-the higher than normal unemployment at a business cycle trough and the lower than normal unemployment at a business cycle peak
-ex: worker laid off because economy is in recession, rehired when expansion begins |
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Term
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Definition
the unemployment that from frictions and structural change when there is no cyclical unemployment
-all frictional and structural unemployment |
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Term
| Consumer Price Index (CPI) |
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Definition
a measure of the average of the prices paid by urban consumers for a fixed basket of consumer goods and services- measures consumer inflation
-calculated every month by the Bureau of Labor Statistics (BLS)
-reference base period: defined to equal 100 |
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Term
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Definition
1. Find the cost of the CPI basket at base-period prices
2. Find the cost of the CPI basket at current-period prices
3. Calculate the CPI for the base period and the current period
ex: page 118 |
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Term
| Main sources of bias in the CPI |
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Definition
Not factored:
-new goods bias
-quality change bias
-commodity substitution bias
-outlet substitution bias
review terms- 119 |
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Term
| CPI overstates inflation by.. |
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Definition
1.1 percentage points a year: actual inflation is less then the measured inflation rate by about 1% per year
-accumulated over a decade it adds up to almost a trillion dollars of additional expenditures |
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Term
| Dividing the value of real GDP by aggregate labor hours gives |
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Definition
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