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econ 2105
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Shoe-leather costs
increase transaction cost from inflation
Menu cost
real cost of changing a
listed price.
Unit-of-account costs
inflation makes money a less reliable unit of
measurement
nominal interest rate
interest rate expressed in dollar terms.
real interest rate
nominal interest rate minus the rate of
inflation.
Disinflation
process of bringing the inflation rate down.
Real income
income divided by the price level
real wage
wage rate divided by the price level.
The natural rate of
unemployment
normal unemployment rate around which the
actual unemployment rate fluctuates
Cyclical unemployment
deviation in the actual rate of unemployment
from the natural rate
Efficiency wages
incentive for better performance.
Side effects of government
policies
help workers who lose their jobs
Structural unemployment
more people seeking jobs in a labor market than there are jobs available
Frictional unemployment
unemployment due to the time workers spend in
job search
Author
sberninghaus3
ID
20971
Card Set
econ 2105
Description
chapter 6 econ
Updated
2010-05-28T00:29:56Z
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