Key Terms

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.

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 increased costs of transactions caused by inflation
the percentage of the total number of people in the labor force who are unemployed
costs arising from the way inflation makes money a less reliable unit of measurement
the difference between the actual rate of unemployment and the natural rate of unemployment due to downturns in the business cycle
the percentage of the population age 16 or older that is in the labor force.
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
(of a loan) the price, calculated as a percentage of the amount borrowed, that a lender charges a borrower for the use of the borrower’s savings for one year
income divided by the price level
nonworking people who are capable of working but have given up looking for a job given the state of the job market
wages that employers set above the equilibrium wage rate as an incentive for workers to deliver better performance
the wage rate divided by the price level
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 number of people who work part time because they cannot find fulltime jobs
the number of people currently employed in the economy, either full time or part time
the nominal interest rate minus the inflation rate
unemployment due to time workers spend in job search
the interest rate in dollar terms
the real cost of changing a listed price
the sum of employment and unemployment
the total number of people who are actively looking for work but aren’t currently employed
unemployment that results when there are more people seeking jobs in a labor market than there are jobs available at the current wage rate, even when the economy is at the peak of the business cycle.
a period in which the real GDP growth rate is positive but the unemployment rate is still rising
the time spent by workers looking for employment.
the process of bringing the inflation rate down

Employment, p. 348

Unemployment, p. 348

Labor force, p. 349

Labor force participation rate, p. 349

Unemployment rate, p. 349

Discouraged workers, p. 350

Marginally attached workers, p. 350

Underemployment, p. 350

Jobless recovery, p. 353

Job search, p. 355

Frictional unemployment, p. 355

Structural unemployment, p. 356

Efficiency wages, p. 358

Natural rate of unemployment, p. 359

Cyclical unemployment, p. 359

Real wage, p. 363

Real income, p. 363

Shoe-leather costs, p. 364

Menu cost, p. 364

Unit-of-account costs, p. 365

Interest rate, p. 366

Nominal interest rate, p. 366

Real interest rate, p. 366

Disinflation, p. 367