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chapter 6 econ
increase transaction cost from inflation
real cost of changing a
inflation makes money a less reliable unit of
nominal interest rate
interest rate expressed in dollar terms.
real interest rate
nominal interest rate minus the rate of
process of bringing the inflation rate down.
income divided by the price level
wage rate divided by the price level.
The natural rate of
normal unemployment rate around which the
actual unemployment rate fluctuates
deviation in the actual rate of unemployment
from the natural rate
incentive for better performance.
Side effects of government
help workers who lose their jobs
more people seeking jobs in a labor market than there are jobs available
unemployment due to the time workers spend in