Chapter 12 and 13

Question 1

in an economy is the total number of employed workers, whether they work full or part-time

Answer 1

total employment

Question 2

number of workers who are actively seeking jobs but not working

Answer 2

total unemployment

Question 3

percentage of the labor force without a paid job

Answer 3

unemployment rate

Question 4

short-term unemployment that occurs while workers search for the jobs suited for their skills and interests

Answer 4

frictional unemployment

Question 5

occurs when workers lose their jobs due to the changes of the seasons

Answer 5

seasonal unemployment

Question 6

arises from a mismatch between job seekers and the types of jobs available

Answer 6

structural unemployment

Question 7

joblessness caused by an economic contraction

Answer 7

cyclical unemployment

Question 8

what are 2/4 areas that affect unemployment?

Answer 8

• work experience
• lack opportunity
• discrimination
• location by state

Question 9

the rise in the price level

Answer 9

inflation

Question 10

the decline in the price level

Answer 10

deflation

Question 11

the measure of the overall price level faced by a typical consumer

Answer 11

consumer price index

Question 12

what does CPI stand for

Answer 12

consumer price index

Question 13

bundle of goods and services that an average consumer might buy

Answer 13

market basket

Question 14

costs of time and effort involved infrequent trips to the bank or ATM to avoid holding much cash during periods of high inflation

Answer 14

shoe leather costs

Question 15

rapid inflation.

Answer 15

hyperinflation

Question 16

costs of updating prices due to inflation

Answer 16

menu costs