inflation, deflation and employment

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Demand pull inflation
where aggregate demand exceeds aggregate supply leading to an increase in the level of prices
1 of 9
cost push inflation
where increased costs of production result in firms increasing their prices leading to an increase in the general price level
2 of 9
tight labour market
where firms have to increase wages to attract the labour that they require
3 of 9
cyclical unemployment
demand deficient unemployment that occurs as a result of the economic cycle
4 of 9
demand deficient unemployment
insufficient AD in the economy to employ the available labour
5 of 9
frictional/ search unemployment
people between jobs
6 of 9
structural unemployment
unemployment caused by a change in the demand side or supply side of the economy
7 of 9
voluntary unemployment
workers who are not prepared to take a job at current wage rates
8 of 9
discouraged workers
workers who have the labour market because despite numerous attempts they are unable to find a job
9 of 9

Other cards in this set

Card 2

Front

where increased costs of production result in firms increasing their prices leading to an increase in the general price level

Back

cost push inflation

Card 3

Front

where firms have to increase wages to attract the labour that they require

Back

Preview of the back of card 3

Card 4

Front

demand deficient unemployment that occurs as a result of the economic cycle

Back

Preview of the back of card 4

Card 5

Front

insufficient AD in the economy to employ the available labour

Back

Preview of the back of card 5
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