Modules 13 - 15

Unemployment due to the time workers spend in job search.

• cyclical unemployment

• structural unemployment

• frictional unemployment

• efficiency wages

Unemployment that results when workers lack the skills required for the available jobs, or there are more people seeking jobs in a labor market than there are jobs available at the current wage rate.

• Cyclical unemployment

• Structural unemployment

• Frictional unemployment

• natural rate of unemployment

Wages that exceed the market equilibrium wage rate; employers use efficiency wages to motivate hard work and reduce worker turnover.

• Wage inflation

• Efficiency wages

• Allocative efficiency

• Productive efficiency

The unemployment rate that arises from the effects of frictional plus structural unemployment.

• Unnatural rate of unemployment

• Frictional unemployment

• Structural unemployment

• Natural rate of unemployment

The deviation of the actual rate of unemployment from the natural rate.

• Frictional unemployment

• Cyclical unemployment

• Natural unemployment

• Structural unemployment

The wage rate divided by the price level to adjust for the effects of inflation or deflation.

• Real income

• Inflation rate

• Real wage

• Menu costs

Income divided by the price level to adjust for the effects of inflation or deflation.

• Nominal GDP

• Real inflation

• Real income

• Real GDP

The percentage increase in the overall level of prices per year.

• Stagflation

• Inflation rate

• Real inflation

• Disinflation

The increased costs of transactions caused by inflation.

• Unit-of-account costs

• Shoe-leather costs

• Menu costs

• Inflation costs

The real costs of changing listed prices.

• Shoe-leather costs

• Unit-of-account costs

• Menu costs

• Real costs