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  1. collective bargaining
    the process by which unions and firms agree on the terms of employment
  2. cyclical unemployment
    the deviation of unemployment from its natural rate. ( Short run flucuation from the Natural Rate of Unemployment)

    = Un
  3. discouraged workers
    individuals who would like to work but have given up looking for a job after 4 weeks

    do not show up in unemployment statistic or rates
  4. efficiency wages
    above-equilibrium wages paid by firms to increase worker productivity
  5. frictional unemployment
    unemployment that results because it takes time for workers to search for the jobs that best suit their tastes and skills

    short lived unemployment
  6. frictional unemployment
    unemployment that results because it takes time for workers to search for the jobs that best suit their tastes and skills

    Also called search employment

    Part of the Natural rate of unemployment
  7. job search
    the process by which workers find appropriate jobs given their tastes and skills
  8. labor force
    the total number of workers, including both the employed and the unemployed

    Labor force = Number of employed + Number of unemployed.
  9. labor-force participation rate
    measures the percentage of the total adult population of the United States that is in the labor force

    LFP= (Labor Force/Adult Population) x 100
  10. natural rate of unemployment
    the normal rate of unemployment around which the unemployment rate fluctuates

    long run (over the years) average unemployment rate

    also called full rate of unemployment
  11. strike
    the organized withdrawal of labor from a firm by a union
  12. structural unemployment
    unemployment that results because the number of jobs available in some labor markets is insufficient to provide a job for everyone who wants one
  13. unemployment insurance
    a government program that partially protects workers' incomes when they become unemployed

    Qualify those who were laid off due to employer no longer needing their skills.

    Benefits are 50% of former wages and last for 26 weeks.

    it increases frictional employment.
  14. unemployment rate
    the percentage of the labor force that is unemployed

    Labor force = (Number of unemployed/Labor Force) x 100
  15. union
    a worker association that bargains with employers over wages, benefits, and working conditions

    Usually earn 20% higher wages and get more benefits than non-union workers for the same type of work.

    Unions have been declining to the fact that they have lost a lot of political power.
  16. Seasonally adjusted unemployment
    Un = Frictional + Structural Unemployment.
  17. Minimum Wage
    Usually refer to as a price floor, which is a legal minimum price for the product in question.

    Usually apply to the unskilled or least skilled or experienced) Labor Market
Card Set:
2013-07-03 21:13:15
Chapter 15

Flash cards from Principles Of Macroeconomics 6th Edition Mankiw
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