CHAPTER 13

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Natural Rate of Unemployment?
Unemployment that exists when aggregate demand for labour equals aggregate supply, that is, voluntary, frictional unemployment
1 of 18
Frictional Unemployment?
Workers moving between jobs
2 of 18
Structural Unemployment?
Unemployment due to a change in the pattern of demand and production
3 of 18
Equilibrium Unemployment?
When aggregate demand for labour equals aggregate supply of labour
4 of 18
Geographical Immobility?
The inability of a factor of production, usually labour, to move to where jobs exist
5 of 18
Unemployment Trap?
Where the income tax and benefit system reduces the net increase in income people can expect from taking paid work. Thus many people would not choose to take a job
6 of 18
Replacement Ratio?
Unemployment benefits divided by the income an unemployed working could receive if in work
7 of 18
Casual Unemployment?
Type of frictional unemployment occurring when workers are laid off on a short term basis
8 of 18
Seasonal Unemployment?
Casual unemployment resulting from seasonal fluctuations in demand
9 of 18
Technological Unemployment?
Unemployment due to the introduction of labour-saving technology
10 of 18
Cyclical or Demand Deficient Unemployment?
Unemployment due to a lack of aggregate demand
11 of 18
Involuntary Unemployment?
When a worker is willing to accept a job at the going wage rate but is not offered one
12 of 18
Classical or Real-wage Unemployment?
Results from real wages being above their market clearing level, creating an excess supply of labour
13 of 18
Hysteresis?
The tendency for a variable not to return to its original value or state when changed. Eg, unemployment can lead to higher unemploment
14 of 18
Stagflation?
The coexistence of high levels of inflation and unemployment
15 of 18
Adaptive Expectations?
Where decisions about the future are based upon past information
16 of 18
NAIRU?
Non-accelerating inflation rate of unemployment, that is, the level of unemployment at which there is no tendency for inflation to accelerate
17 of 18
Globalisation?
Worldwide growth of multinational companies, international integration, the spread of free markets and policies of liberalisation and free trade
18 of 18

Other cards in this set

Card 2

Front

Frictional Unemployment?

Back

Workers moving between jobs

Card 3

Front

Structural Unemployment?

Back

Preview of the front of card 3

Card 4

Front

Equilibrium Unemployment?

Back

Preview of the front of card 4

Card 5

Front

Geographical Immobility?

Back

Preview of the front of card 5
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