Types of unemployment, measures of inflation, and the relationship between the two in macroeconomic theory. Front: the term or concept. Back: a plain-language definition.
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- Frictional unemployment
- Unemployment due to the time spent searching for a new job when workers are between positions.
- Structural unemployment
- Unemployment caused by a mismatch between the skills workers possess and the skills that employers require.
- Cyclical unemployment
- Unemployment that rises during recessions and falls during periods of economic expansion.
- Seasonal unemployment
- Unemployment due to predictable, recurring changes in labor demand at certain times of the year.
- Natural rate of unemployment
- The unemployment rate at which an economy is at full employment, consisting of frictional and structural unemployment only.
- NAIRU
- The Non-Accelerating Inflation Rate of Unemployment; the unemployment level below which inflation tends to accelerate.
- Labor force
- The total number of people in the working-age population who are employed or actively seeking employment.
- Unemployment rate
- The percentage of the labor force that is unemployed and actively seeking work.
- U-1 unemployment rate
- The unemployment rate for workers who have been jobless for 15 weeks or longer.
- U-3 unemployment rate
- The most commonly cited official unemployment rate; includes all civilians aged 16+ who are unemployed and actively seeking work.
- U-6 unemployment rate
- The broadest unemployment measure; includes discouraged workers and those working part-time because they cannot find full-time jobs.
- Discouraged worker
- A person who has stopped searching for employment because they believe no suitable jobs are available.
- Labor force participation rate
- The percentage of the working-age population that is employed or actively seeking employment.
- Inflation
- A sustained increase in the general price level of goods and services throughout an economy over time.
- Deflation
- A sustained decrease in the general price level of goods and services in an economy over time.