CH 9 Flashcards
People who are available for work but have not looked for a job during the previous 4 weeks because they believe no jobs are available for them.
Discouraged Workers
~60,000 houses selected to be “representative”
Members of house of working age (16+)
Asked about employment during “reference week” and recent job search activities
The Household Survey (Current Population Survey)
Unemployment rate calculated
(# of unemployed/ Labor Force) x 100
most common measure of unemployment
BLS series U-3
Percentage of the working age population in the labor force
(Labor force/ Working-Age Population) x 100
Labor force participation rate
The percentage of the working age population that is employed
( Employment/ Working Age Population) x 100
Employment- Population Ratio
samples ~300,000 places of work about employees; data determined by real payrolls, not self-reporting
Establishment Survey
short-term unemployment that arises from the process of matching workers with jobs
Frictional Unemployment
unemployment that arises from a persistent mismatch between the skills and attributes of workers and the requirements of jobs
Structural Unemployment
a fall in the unemployment ratio of 1% is associated with a 2.5% increase in output relative to potential output. GDP and unemployment have inverse relationship
Okun’s Law
unemployment caused by a business cycle recession
Cyclical Unemployment
an above-market wage that a firm pays to increase workers’ productivity
Efficiency Wage
a measure of the average prices of goods and services in the economy
Price Level
the percentage increase in price level from one year to the next. Change from one year to next shown by percentage change in CPI
inflation rate
a measure of the average change over time in the prices a typical urban family of four pays for the goods and services they purchase
Consumer Price Index
