people that are employed or actively seeking work
What is labor force?
the measure of the price level based on the consumption pattern
What is Consumer Price Index (CPI)?
suppliers of loanable funds
Who are Savers?
firms that help channel funds (middleman)
What is a financial intermediary
tending to see the worst aspect of things or believe that the worst will happen.
What is Pessimistic?
unemployment caused by time delays in matching available jobs & workers
What is Frictional Unemployment?
wage in current dollars
What is Nominal Wage?
demanders for loanable funds
Who are Borrowers?
ownership or shares in a company
What is a Stock?
increase in interest rates, decrease in quantity demanded
What is a leftward shift in supply?
unemployment caused by changes in the industrial makeup of the economy i.e., bankruptcies
What is Structural unemployment?
normal wage adjusted for inflation
What is Real Wage?
shifts the supply curve for loanable funds (x3)
What is changes in time preference?
What is changes in income and wealth?
What is consumption smoothing?
a security that represents a debt to be paid
What is a Bond?
MxV=PxY
What is Money Growth Rate?
unemployment that is caused by economic downturns i.e., Great Recession
What is Cyclical Unemployment?
the costs of changing prices
What are Menu Costs?
shifters of the demand curve (x2)
What is productivity of capital?
What is investor confidence?
lenders---->borrowers
What is Direct Finance?
does not include discouraged workers or underemployed workers
What is the Official Unemployment Rate?
in a healthy economy, the unemployment rate is
How much is greater than 0?
determining whether high prices are due to increase in demand or inflation
What is Price Confusion?
movement along the supply curve
What is a change in interest rate?
lenders-->financial intermediaries-->borrowers
What is Indirect Finance?
if %M>%Y then %P>0
if %Y>%M then %P<0
if %M=%Y then %P=0
What is Constant velocity of money?