Chapter 8 Vocabulary

Chapter 8 Vocabulary - process of matching workers with...

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Chapter 8: Unemployment and Inflation 1. Labor force: The sum of employed and unemployed workers in the economy 2. Unemployment rate: The percentage of the labor force that is unemployed 3. Discourage workers: People who are available for work but have not looked for a job during the previous four weeks because they believe no jobs are available for them 4. Labor force participation rate: The percentage of the working age population in the labor force 5. Frictional unemployment: Short-term unemployment that arises from the
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Unformatted text preview: process of matching workers with jobs 6. Structural unemployment: Unemployment arising from a persistent mismatch between the skills and attributes of workers and the requirements of jobs 7. Cyclical unemployment: Unemployment caused by a business cycle recession 8. Natural rate of unemployment: The normal rate of unemployment consisting of frictional unemployment plus structural unemployment 9. Efficiency wage: A higher-than-market wage that a firm pays to increase worker productivity...
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