Macroeconomics: Chapter 6

a measure of the average prices of goods and services in the economy

a measure of the price level

the weighted average of prices of a specific set of goods and services purchased by a typical household

The year chosen as a point of reference or basis of comparison for prices in other years; a benchmark year.

a general and progressive increase in prices

nominal income adjusted for price changes

the current dollar amount of a person’s income

the percentage of the civilian work force that is unemployed at any given date

percentage of the noninstitutional adult civilian population that is employed

percentage of the civilian noninstitutional population that is in the civilian work force

unemployment that results because it takes time for workers to search for the jobs that best suit their tastes and skills

Unemployment of workers whose skills are not demanded by employers, who lack sufficient skill to obtain employment, or who cannot easily move to locations where jobs are available

unemployment caused by frictional and structural factors in the economy

The difference between the unemployment rate and the natural unemployment rate.

the level of employment reached when there is no cyclical unemployment, the situation that exists when the official unemployment rate equals the natural unemployment rate

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