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 | 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