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.
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 | unemployment due to time workers spend in job search. (of inflation) costs arising from the way inflation makes money a less reliable unit of measurement. the wage rate divided by the price level. income divided by the price level. the time spent by workers in looking for employment. the real cost of changing a listed price. the percentage of the population age 16 or older that is in the labor force. the percentage of the total number of people in the labor force who are unemployed, calculated as unemployment/(unemployment + employment). the total number of people currently employed for pay in the economy, either full time or part time. 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 nominal interest rate minus the inflation rate. the difference between the actual rate of unemployment and the natural rate of unemployment due to downturns in the business cycle. the interest rate in dollar terms. 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 process of bringing down inflation that has become embedded in expectations. the increased costs of transactions caused by inflation. 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. the number of people who 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. 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. a period in which real GDP growth rate is positive but the unemployment rate is still rising. 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 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 total number of people who are actively looking for work but aren’t currently employed. |