kt6

Question 1

Seasonal
Unemployment

Answer 1

Unemployment due to downturn in demand for certain
types of labour at certain times of year

Question 2

Real Wage
( or Classical)
Unemployment

Answer 2

Unemployment due to real wages being held above
market-clearing level

Question 3

Technological
Unemployment

Answer 3

Unemployment due to the substitution of labour by capital
when technology advances

Question 4

Natural Rate of
Unemployment
(NAIRU)

Answer 4

The ‘natural’ unemployment rate at which demand for
labour matches supply of labour in the macro economy
(leaving only voluntary unemployment); also known as
NAIRU (the non accelerating inflation rate of
unemployment)

Question 5

Voluntary
unemployment

Answer 5

Workers who are able to fill current vacancies but choose
not to do so at the wage rate offered

Question 6

Deflation

Answer 6

Situation of persistent negative inflation

Question 7

Disinflation

Answer 7

Falling (but positive) inflation

Question 8

Demand-Pull
Inflation

Answer 8

Inflation caused by rising aggregate demand