Term
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Definition
| People who work: includes both full time and part time workers or people temporally absent from job. |
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Term
| Natural rate of unemployment |
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Definition
Normal rate of unemployment
Around which the unemployment rate fluctuates
more straightish |
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Term
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Definition
| Deviation of unemployment from its natural rate |
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Term
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Definition
| 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
| 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
| Why some frictional unemployment is inevitable |
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Definition
Changes in demand for labor among different firms
Changes in composition of demand among industries or regions (sectoral shifts) |
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Term
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Definition
Government program
Partially protects workers’ incomes when they become unemployed
Increases frictional unemployment without intending to do so |
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Term
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Definition
| Forces the wage to remain above the equilibrium level |
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Term
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Definition
| raises the wage above the equilibrium level |
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Term
| Explicit agreement among members of a cartel |
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Definition
To raise prices is normally considered illegal
Is called conspiracy in restraint of trade |
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Term
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Definition
Is backed by antitrust laws of NLRB
Enables them obtain the power they need to bargain with employers |
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Term
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Definition
Can be voluntary
Be imposed on employers during collective bargaining |
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Term
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Definition
High union wages reduce employment in unionized firms below the efficient level
Europe’s unemployment rate is increasing steadily due to rigidities in Europe’s labor market, especially so for members of the EU. This includes high degrees of unionization
Some workers benefit at the expense of other workers |
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Term
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Definition
- pay lower wages and offer worse working conditions
help firms respond efficiently to workers’ concerns
Keep a happy and productive workforce |
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Term
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Definition
| Above-equilibrium wages paid by firms to increase worker productivity |
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Term
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Definition
Better paid workers
Eat a more nutritious diet
Healthier and more productive |
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Term
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Definition
Firm – pays a high wage
Attracts a better pool of workers
Increases the quality of its workforce |
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Term
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Definition
High wages – make workers more eager to keep their jobs
Give workers an incentive to put forward their best effort |
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Term
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Definition
| 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
Medium of exchange
Unit of account
Store of value |
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Term
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Definition
| Item that buyers give to sellers when they want to purchase goods and services |
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Term
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Definition
| The asset must be divisible |
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Term
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Definition
| The asset must be stable in value |
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Term
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Definition
Balances in bank accounts
Depositors can access on demand by writing a check |
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Term
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Definition
| demand deposit, traveler check, currency |
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Term
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Definition
| Oversee the banking system and regulate the quantity of money in the economy |
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Term
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Definition
| Federal Open Market Committee |
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Term
| To increase the money supply |
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Definition
| The Fed buys U.S. government bonds |
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Term
| An increase in reserve requirement |
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Definition
| Decrease the money supply |
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Term
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Definition
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Term
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Definition
| everyone runs to get money |
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Term
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Definition
| interest rate at which banmks make overnight loans to eachother |
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Term
| A change in federal funds rate |
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Definition
| Changes other interest rates |
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