the number of people who are actively looking for work but aren't currently employed.
equal to the sum of employment and unemployment
Labor Force Participation Rate
the percentage of the population aged 16 or older that is in the labor force
The unemployment rate
the percentage of the total number of people in teh labor force who are unemployed
the number of people currently employed in the economy, either full time or part time.
nonworking people who are capable of working but have given up looking for a job given the state of the job market
Marginally attached workers
would like to be employed and have looked for a job in the recent past but are not currently looking for work.
the number of people who work part time because they cannot find full time jobs
workers who spend time looking for employment are engaged in this
unemployment due to the time workers spend in job search.
unemployment that results when there are more people seeking jobs in a labor market that there are jobs available at the current wage rate
wages that employers set above the equilibrium wage rate as an incentive to work harder and increase efficiency.
Natural rate of unemployment
the unemployment rate that arises from the effects of frictional plus structural unemployment
the deviation of the actual rate of unemployment from the natural rate.
the wage rate divided by the price level
income divided by the price level
Shoe Leather costs
the increased costs of transactions caused by inflation
the real cost of changing a listed price
Unit of account costs
arise from the way inflation makes money a less reliable unit of measurement
Nominal interest rate
the interest rate expressed in dollar terms
Real interest Rate
the nominal interest rate minus the rate of inflation
the process of bringing the inflation rate down