Term
| What does 'employed' mean? Who do they include? |
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Definition
| Individuals who have jobs earning some form of income. This includes working people on vacation, on sick leave, on strike/lockout and full/part time workers. |
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Term
| What does 'unemployed' mean? Who do they include? |
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Definition
| Jobless individuals who actively search for work. This includes individuals who have been permanently and temporarily laid off. |
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Term
| What is the labour force? |
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Definition
| The total of all the EMPLOYED and UNEMPLOYED working age adults. |
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Term
| What groups are in the NLF (Not In the Labour Force)? |
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Definition
| Jobless individuals who DO NOT look for work, housewives/husbands and jobless students |
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Term
| How is Participation Rate calculated? |
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Definition
| LF (LABOUR FORCE)/WORKING AGE POPULATION x 100 = % of AVAILABLE WORKING AGE POPULATION |
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Term
| How is Unemployment Rate calculated? |
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Definition
| U (UNEMPLOYED)/LF(LABOUR FORCE)x 100 = % of UNEMPLOYED LABOUR FORCE |
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Term
| What factors cause unemployment to rise? |
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Definition
| More people lose their jobs, people who have left school and have yet to find work, newly immigrated people. |
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Term
| What factors cause unemployment to fall? |
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Definition
| People find jobs, people who return to education, emigrated people, discouraged workeres |
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Term
| What are the types of unemployment? What are they often called? |
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Definition
| Seasonal (Natural), Frictional (Voluntary)and Structural (Equilibrium). |
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Term
| What is full employment? What is underemployment? |
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Definition
| Full employment exists when cyclical unemployment is eliminated. Underemployment is when individuals have jobs, but their skills are inefficiently utilized. |
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Term
| What is the unemployment that governments try to fight? |
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Definition
| CYCLICAL/DEMAND DEFICIENT unemployment. Joblessness that occurs due to a DECREASE in DEMAND for goods/services which leads to a DECREASE in LABOUR for those goods/services. |
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Term
| What is the main difference between structural and cyclical unemployment? |
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Definition
Structural - PERMANENT FALL IN DEMAND
Cyclical - TEMPORARY FALL IN DEMAND |
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Term
| What is inflation? What is the rate of inflation? |
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Definition
| A sustained increase in the General Price level as measured by the Consumer Price Index (C.P.I). The rate of inflation is the annual % change in the General Price level. |
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Term
| What are the types of inflation? Define and Draw their diagrams. |
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Definition
Demand and Pull - increases in the demand for goods/services causes the General Price level to rise.
Cost-Push - increases in INPUT costs causes the prices of FINAL goods/services to rise.
"Upward Spiral" - (Demand Pull + Cost Push Inflation) a cycle of rising prices and wages. |
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Term
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Definition
| Sudden, fast; unexpected enormous increases in the General Price Level. |
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Term
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Definition
| A SUSTAINED DECLINE in the GENERAL PRICE LEVEL as measured by the CPI. |
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Term
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Definition
| The DECLINE in the INFLATION RATE. |
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Term
| What is the Consumer Price Index? How is it calculated? |
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Definition
A statistic which measure the change in the price of a "typical basket of goods/services" purchased by the average consumer.
(CURRENT PRICE/BASE YEAR PRICE x 100 = % change since the BASE YEAR) |
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Term
| How do you calculate the % increase in inflation? |
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Definition
| (New # - Old #/Old # x 100) = % increase in inflation since the BASE YEAR) |
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