Match each of the terms on the left with its definition on the right. Click on the term first and then click on the matching definition. As you match them correctly they will move to the bottom of the activity.
Real income Invisible underemployment Natural rate of unemployment Labour force Indexing Efficiency wages Visible underemployment Nominal interest rate Employment Shoe-leather costs Disinflation Job search Unexpected inflation Labour force participation rate Unemployment rate Interest rate Real wage Discouraged workers Jobless recovery Marginally attached workers Cyclical unemployment Unemployment Underemployment Frictional unemployment Unit-of-account costs Structural unemployment Real interest rate Menu costs | the difference between the actual and expected inflation rates. nonworking individuals who say they would like a job and have looked for work in the recent past but are not currently looking for work. income divided by the price level. the price, calculated as a percentage of the amount borrowed, that a lender charges a borrower for the use of their savings for one year. a way to correct the effect of inflation on the purchasing power of a unit of currency by adjusting the nominal/dollar value of an item to the inflation rate. the increased costs of transactions caused by inflation. the interest rate in dollar terms. the number of people who have jobs that, in certain ways, fall short of what they want. the difference between the actual rate of unemployment and the natural rate of unemployment due to downturns and upturns in the business cycle. the sum of employment and unemployment; that is, the number of people who are currently working plus the number of people who are currently looking for work. the number of people who have jobs that do not fully use their skills or that have one or more substandard job characteristics, such as low pay. unemployment that results when there are more people seeking jobs in a particular labour market than there are jobs available at the current wage rate, even when the economy is at the peak of the business cycle. the percentage of the population age 15 or older that is in the labour force. costs arising from the way inflation makes money a less reliable unit of measurement. the process of bringing down inflation that has become embedded in expectations. a period in which the real GDP growth rate is positive but the unemployment rate is still rising. the total number of people (aged 15 and older) who are actively looking for work but aren’t currently employed. unemployment due to time workers spend in job search. the wage rate divided by the price level. the number of people who involuntarily work part time because they cannot find full-time jobs. wages that employers set above the equilibrium wage rate as an incentive for workers to deliver better performance. the real cost of changing a listed price. when workers spend time looking for employment. individuals who want to work but who have stated to government researchers that they aren’t currently searching for a job because they see little prospect of finding one given the state of the job market. the nominal interest rate minus the inflation rate. the normal unemployment rate around which the actual unemployment rate fluctuates; the unemployment rate that arises from the effects of frictional and structural unemployment. the total number of people (aged 15 and older) currently employed for pay in the economy, either full time or part time. the percentage of the total number of people in the labour force who are unemployed, calculated as unemployment/(unemployment + employment). |