Econ 165 Ch 4 Vocab

The study of the operation of the economy as a whole

Legislation giving the federal government the right and responsibility to provide an environment for the achievement of full employment, full production, and stable prices.

A resource available for production is not being used

Occurs when people are voluntarily out of work for a short period of time while searching for a job

Occurs when only those voluntarily out of work are unemployed, or the unemployment rate includes only frictional unemployment

Involuntary unemployment that results from a downswing in a business cycle, or a recession

Involuntarily unemployment that results when a worker's job is no longer part of the production structure of the economy

All persons 16 years of age and older who are working or actively seeking work

The percentage of some specified group that is in the labor force

The percentage of the labor force that is unemployed and actively seeking work

Persons who drop out of the labor force because they have been unsuccessful for a long period of time in finding job

A resource is not used to its fullest productive capability

The unemployment rate that inculdes the frictionally and structurally unemployed; occurs when cyclical unemployment is eliminated

An increase in the general level of prices

Extremely rapid increases in the general level of prices