13 - unemployment Flashcards

1
Q

natural rate of unemployment

A

the unemployment that exists when aggregate demand for labour equals aggregate supply, that is voluntary, frictional unemployment

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2
Q

frictional unemployment

A

workers moving between jobs

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3
Q

structural unemployment

A

unemployment due to a change in the pattern of demand and production

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4
Q

equilibrium unemployment

A

when aggregate demand for labour equals aggregate supply of labour

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5
Q

geographical immobility

A

the inability of a factor of production, usually labour, to move where jobs exist

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6
Q

unemployment trap

A

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

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7
Q

replacement ratio

A

unemployment benefits divided by the income an unemployed worker could receive if in work

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8
Q

casual unemployment

A

a kind of frictional unemployment occurring when workers are laid off on a short-term basis

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9
Q

seasonal unemployment

A

casual unemployment resulting from seasonal fluctuuations in demand

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10
Q

deindustrialisation

A

a fall in the proportion of national output accounted for by the manufacturing sector of the economy

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11
Q

technological unemployment

A

unemployment due to the introduction of labour-saving technology

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12
Q

cyclical (or demand-deficient) unemployment

A

unemployment due to a lack of aggregate demand

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13
Q

involuntary unemployment

A

when a worker is willing to accept a job at the going wage rate but is not offered one

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14
Q

classical (or real wage) unemployment

A

results for real wages being above the market clearing level, creating an excess supply of labour

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15
Q

phillips curve

A

an economic model that shows trade off between inflation and unemployment

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16
Q

stagflation

A

the coexistence of high levels of inflation and unemployment

17
Q

adaptive expectations

A

where decisions about the future are based upon past information

18
Q

NAIRU

A

the non accelerating inflation rate of unemployment, that is, the level of unemployment at which there is no tendency for inflation to accelerate

19
Q

globalisation

A

worldwide growth of multinational companies, international integration, the spread of free markets and policies of liberalisation and free trade