# Macroeconomics

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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.