Inflation And Unemployment Flashcards
Inflation
A general increase in price level of goods and services over a period of time
Claimant count
A measure of unemployment: the number of people claiming unemployment benefits
Employment
A term for those at the working age and have a job
International competitiveness
An economy’s ability to trade in international markets by offering more cost-effective products than its rivals
Consumer price index (CPI)
A measurement of an economy’s price level that EXCLUDES items such as the cost of housing.
The uk’s official measure of inflation
Retail price index (RPI)
Measurement of an economies price level that INCLUDES items such as the cost of housing
Used to be the uk’s official measurement of inflation, now replaced by CPI
International labour organisation (ILO) measure
Measurement of unemployment consistent with the ILO’s definition
Typically higher than the claimant count
Geographical immobility
A worker’s inability to change profession because of geographical inertia. Physically prevents a worker moving from one place to another
Occupational immobility
A workers inability to change their profession because of the intransferability of their skills
Technological unemployment
Situations in which workers are unemployed due to the introduction of labour-saving technologies
Unemployment
The percentage of people in an economy who are economically active but don’t have a job
Structural unemployment
A mismatch of skills that workers in an economy have and the skills that producers demand
Cyclical unemployment
When people don’t have a job due to changes in the economic cycle
Underemployment
If a person has a job bud doesn’t work as many hours wanted, or the job doesn’t fully utilise the skill set
Deflation
This occurs if the price level is falling
