 | Term | Definition |
| |
demand-side inflation |
an increase in the price level that originates on the demand side of the economy |
| |
supply side inflation |
an increase in the price level that originates on the supply side of the economy |
| |
velocity |
the average number of times a dollar is spent to buy final goods and services in a year |
| |
simple quantity theory of money |
a theory that predicts that changes in the price level will be strictly proportional to changes in the money supply |
| |
hedge |
to try to avoid or lessen a loss by taking some counterbalancing action |
| |
frictional unemployment |
refers to workers who have lost their jobs because of changing market (demand) conditions and who have transferable skills. Unemployment due to natural "frictions" of the economy. A person is frictionally unemployed when he or she is unemployed because of changing market conditions and has transferable skills. |
| |
structural unemployment |
refers to workers who have lost their jobs because of changing market (demand) conditions and whose skills do not match the requirement of available jobs. Unemployment that arises when the skills of available workers do not match the requirements of a available jobs. |
| |
natural unemployment |
unemployment that is caused by frictional and structural factors in the economy |
| |
full employment |
the situation that exists when the official unemployment rate equals the natural unemployment rate |
| |
cyclically unemployed |
the difference between the offical unemployment rate and the natural rate of unemployment |
| Add or remove terms from this set |
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