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Macro Chapter 7
Terms in this set (14)
Natural Rate of unemployment
The steady sate rate of unemployment ; the rate of unemployment toward which the economy usually shifts
The unemployment that results because it takes time for workers to search for jobs that best suits their skill and taste
A change in the composition demand among industries and regions
A government program under which unemployed workers can collect benefits for a certain period of time after losing their jobs
the failure of wages to adjust to equilibrate labor supply or labor demand
The unemployment resulting from wage rigidity and job rationing
insiders versus outsiders
workers who are already employed and there fore have an influence on wage bargaining
theories of real-wage rigidity and unemployment according to which firms raise labor and productivity and profits by keeping real wages above the equilibrium level
Individuals who have left the labor force because they believe there is little chance of them finding a job
spells of unemployment
are short term, and most weeks of unemployment are attributable to long term unemployment.
income tax credit
does not raise labor costs.
The minimum wage:
has its greatest impact on teenage unemployment.
The natural rate of unemployment is
the average rate of unemployment around which the economy fluctuates
prevents labor demand and labor supply from reaching the equilibrium level