Term
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Definition
| The total number of workers, including both the employed and the unemployed, measured by the Bureau of Labor Statistics (BLS). |
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Term
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Definition
| The percentage of the labor force that is unemployed. number of unemployed/labor force X 100 |
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Term
| Labor Force Participation Rate |
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Definition
| The percentage of the adult population that is in the labor force. labor force/adult population X 100 |
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Term
| Natural Rate of Unemployment |
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Definition
| The normal rate of unemployment around which the unemployment rate fluctuates. |
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Term
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Definition
| The deviation of unemployment from its natural rate. |
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Term
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Definition
| Individuals who would like to work but have given up looking for a job, do not show up in unemployment statistics. |
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Term
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Definition
| Unemployment that results because it takes time for workers to search for the jobs that best suit their tastes and skills. |
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Term
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Definition
| Unemployment that results because the number of jobs available in some labor markets is insufficient to provide a job for everyone who wants one. |
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Term
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Definition
| A government program that partially protects workers incomes when they become unemployed, 50% of wages for 26 weeks. |
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Term
| Minimum Wage Law does what? |
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Definition
| Forces the wage to remain above the level that balances supply and demand, it raises the quantity of labor supplied and reduces the quantity of labor demanded; causing a surplus in labor (unemployment). |
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Term
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Definition
| A worker association that bargains with employers over wages, benefits, and working conditions. |
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Term
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Definition
| The process by which unions and firms agree on the terms of employment, group discussion. |
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Term
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Definition
| The organized withdrawal of labor from a firm by a union. |
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Term
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Definition
| Above-equilibrium wages paid by firms to increase worker productivity (health, turnover, quality, effort) |
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Term
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Definition
| The set of assets in an economy that people regularly use to buy goods and services from other people. |
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Term
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Definition
| Function of Money: an item that buyers give to sellers when they want to purchase goods and services. |
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Term
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Definition
| Function of Money: The yardstick people use to post prices and record debts. |
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Term
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Definition
| Function of Money: An item tat peple can use to transfer purchasing power from the present to the future. |
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Term
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Definition
| The ease with which an asset can be converted into the economy's medium of exchange. |
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Term
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Definition
| Money that takes the form of a commodity with intrinsic value(gold). |
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Term
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Definition
| Money without intrinsic value that is used as money because of government decree. |
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Term
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Definition
| The paper bills and coins in the hands of the public. |
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Term
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Definition
| Balances in bank accounts that depositors can access on demand by writing a check. |
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Term
| Where is all the currency? |
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Definition
| Held abroad, drug dealers, tax evaders, etc. |
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Term
| Fractional Reserve Banking |
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Definition
| A banking system in which banks hold only a fraction of deposits as reserves. |
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Term
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Definition
| The purchase and sale of U.S. government bonds by the Fed. |
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Term
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Definition
| The interest rate at which banks make overnight loans to one another. |
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Term
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Definition
| A theory asserting that the quantity of money available determines the price level and that the growth rate in the quantity of money available determines the inflation rate. |
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Term
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Definition
| Variables measured in monetary units |
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Term
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Definition
| Variables measured in physical units. |
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Term
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Definition
| The theoretical separation of nominal and real variables. |
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Term
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Definition
| The proposition that changes in the money supply do not affect real variables. |
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Term
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Definition
| The rate at which money changes hands. |
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Term
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Definition
| The revenue the government raises by creating money, dollars are less valuable. |
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Term
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Definition
| The resources wasted when inflation encourages people to reduce their money holdings. |
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Term
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Definition
| The costs of changing prices. |
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Term
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Definition
| The profits made by selling an asset for more than is purchase price. |
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Term
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Definition
| A period of declining real incomes and rising unemployment |
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Term
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Definition
| Describes the world in the long run but not in the short run. |
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Term
| Model of Aggregate Demand & Aggregate Supply |
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Definition
| The model that most economists use to explain short run fluctuations. |
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Term
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Definition
| Shows the quantity of goods and services bought at each price level, Downward Curve. |
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Term
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Definition
| The quantity of goods and services that firms choose to produce and sell at each price level. Vertical in the long run. Upward Curve. |
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Term
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Definition
| Price Level is on the vertical, quantity of output on the horizontal |
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Term
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Definition
| A period of falling output and rising prices, |
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