Key terms - Monitoring jobs and inflation Flashcards

1
Q

Consumer prices index (CPI) / Retail prices index (RPI)

A

Measure an average of the prices paid by consumers for a fixed ‘basket’ of goods.

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2
Q

Cyclical unemployment

A

The higher than normal unemployment at a business cycle trough and the lower than normal unemployment at a business cycle peak.

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3
Q

Deflation

A

A persistently falling price level.

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4
Q

Discouraged worker

A

Someone who is available and willing to work but who has stopped looking for a job because of repeated failure to find one.

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5
Q

Economic activity rate

A

The percentage of the working-age population who are economically active; members of the workforce.

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6
Q

Economically active/workforce

A

People who have a job or are willing and able to take a job.

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7
Q

Economically inactive

A

People who don’t want a job.

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8
Q

Employment rate

A

The percentage of people of working age who have jobs.

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9
Q

Frictional unemployment

A

The unemployment that arises from people entering and leaving the workforce and from an ongoing process of job creation and destruction.

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10
Q

Full employment

A

A situation in which the unemployment rate equals the natural unemployment rate.

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11
Q

GDP deflator

A

An index of the prices of all the items in GDP.

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12
Q

Hyperinflation

A

An inflation rate of 50% a month or higher that grinds the economy to a halt and society to a collapse.

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13
Q

Inflation

A

A persistently rising price level.

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14
Q

Inflation rate

A

The percentage change in price level from one year to the next.

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15
Q

Natural unemployment rate

A

Natural unemployment as a percentage of the workforce.

Natural unemployment = arises from frictions and structural change when there is no cyclical employment.

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16
Q

Output gap

A

The gap between real GDP and potential GDP.

17
Q

Price level

A

The average level of prices and the value for money.

18
Q

Reference base period

A

The RPI is defined to equal 100 for a period called the reference base period; currently January 1987.

19
Q

Structural unemployment

A

Arises when changes in technology or international competition change the skills needed to perform jobs or change the location of jobs.

20
Q

Unemployment rate

A

The percentage of economically active people who are unemployed.

21
Q

Working age population

A

The total number of people aged 16 to 24 who are not in prison, hospital, or some other form of institutional care.