Chapter 5 -Unemployment and Inflation Flashcards
Working age population
People 15 years of age and older who are legally entitled to work in Canada.
Unemployment rate
The percentage of the labour force that is unemployed
Efficiency wage
A higher-than-market wage that a firm pays to increase worker productivity.
Labour force
The sum of employed and unemployed workers in the economy.
Real interest rate
The nominal interest rate minus the inflation rate
Employment-population ratio
A measure of the portion of the population engaged in paid work.
Consumer Price Index (CPI)
An average of the prices of the goods and services purchased by a typical household.
Structural unemployed
Unemployment that arises from a persistent mismatch between the skills and attributes of workers and the requirements of jobs.
Nominal interest rate
The stated interest rate on a loan.
Inflation
A general increase in the prices of goods and services over time.
Frictional unemployment
Short-term unemployment that arises from the process of matching workers with jobs.
Natural rate of unemployment
The normal rate of unemployment, consisting of frictional unemployment plus structural unemployment.
Producer price index (PPI)
An average of the prices received by producers of goods and services at all stages of production.
Cyclical unemployment
Unemployment caused by a business cycle recession.
Seasonal unemployment
Unemployment that is due to seasonal factors, such as weather or the fluctuation in demand for some products during different times of the year.
