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.

KEY TERMS

Question

Employment
Unemployment
Labor force
Labor force participation rate
Unemployment rate
Discouraged workers
Marginally attached workers
Underemployment
Jobless recovery
Job search
Frictional unemployment
Structural unemployment
Efficiency wages
Natural rate of unemployment
Cyclical unemployment
Real wage
Real income
Shoe-leather costs
Menu costs
Unit-of-account costs
Interest rate
Nominal interest rate
Real interest rate
Disinflation
the number of people who work part time because they cannot find full-time jobs.
the increased costs of transactions caused by inflation.
the process of bringing down inflation that has become embedded in expectations.
the wage rate divided by the price level.
the interest rate in dollar terms.
the total number of people currently employed for pay in the economy, either full time or part time.
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.
unemployment due to time workers spend in job search.
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.
income divided by the price level.
the nominal interest rate minus the inflation rate.
the total number of people who are actively looking for work but aren’t currently employed.
the difference between the actual rate of unemployment and the natural rate of unemployment due to downturns in the business cycle.
wages that employers set above the equilibrium wage rate as an incentive for workers to deliver better performance.
the time spent by workers in looking for employment.
a period in which real GDP growth rate is positive but the unemployment rate is still rising.
the percentage of the total number of people in the labor force who are unemployed, calculated as unemployment/(unemployment + employment).
the normal unemployment rate around which the actual unemployment rate fluctuates; the unemployment rate that arises from the effects of frictional and structural unemployment.
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.
the percentage of the population age 16 or older that is in the labor force.
unemployment that results when there are more people seeking jobs in a particular labor market than there are jobs available at the current wage rate, even when the economy is at the peak of the business cycle.
the real cost of changing a listed price.
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.
(of inflation) costs arising from the way inflation makes money a less reliable unit of measurement.