Natural Rate of Unemployment?
Unemployment that exists when aggregate demand for labour equals aggregate supply, that is, voluntary, frictional unemployment
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Frictional Unemployment?
Workers moving between jobs
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Structural Unemployment?
Unemployment due to a change in the pattern of demand and production
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Equilibrium Unemployment?
When aggregate demand for labour equals aggregate supply of labour
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Geographical Immobility?
The inability of a factor of production, usually labour, to move to where jobs exist
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Unemployment Trap?
Where the income tax and benefit system reduces the net increase in income people can expect from taking paid work. Thus many people would not choose to take a job
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Replacement Ratio?
Unemployment benefits divided by the income an unemployed working could receive if in work
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Casual Unemployment?
Type of frictional unemployment occurring when workers are laid off on a short term basis
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Seasonal Unemployment?
Casual unemployment resulting from seasonal fluctuations in demand
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Technological Unemployment?
Unemployment due to the introduction of labour-saving technology
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Cyclical or Demand Deficient Unemployment?
Unemployment due to a lack of aggregate demand
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Involuntary Unemployment?
When a worker is willing to accept a job at the going wage rate but is not offered one
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Classical or Real-wage Unemployment?
Results from real wages being above their market clearing level, creating an excess supply of labour
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The tendency for a variable not to return to its original value or state when changed. Eg, unemployment can lead to higher unemploment
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The coexistence of high levels of inflation and unemployment
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Adaptive Expectations?
Where decisions about the future are based upon past information
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Non-accelerating inflation rate of unemployment, that is, the level of unemployment at which there is no tendency for inflation to accelerate
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Worldwide growth of multinational companies, international integration, the spread of free markets and policies of liberalisation and free trade
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Other cards in this set

Card 2


Frictional Unemployment?


Workers moving between jobs

Card 3


Structural Unemployment?


Preview of the front of card 3

Card 4


Equilibrium Unemployment?


Preview of the front of card 4

Card 5


Geographical Immobility?


Preview of the front of card 5
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