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Question		Answer
Types of equilibrium unemployment: start learning		frictional, structural, natural, NAIRU
NAIRU stands for: start learning		Non-accelerating inflation rate of unemployment
Types of disequilibrium unemployment: start learning		classical (neoclassical), cyclical (Keynesian)
Frictional (search) unemployment occurs when people start learning		leave their jobs and are unemployed for a period of time while they are looking for a new job
Frictional (search) unemployment occurs as a result of start learning		imperfect information the labour market
when Frictional (search) unemployment occurs start learning		it takes time for workers to find jobs even though there are vacancies
Types of theories of unemployment: start learning		Neoclassical, Keynesian, Job Search, Natural rate of unemployment, NAIRU, Beveridge curve
heterogenous means start learning		diverse in character or content
Job offers are heterogenous in terms of start learning		wage levels and skill requirements by employers
Job seekers are heterogenous in terms of start learning		skills possessed and wage aspirations- reservation wages
What is a reservation wage start learning		the lowest wage rate at which a worker would be willing to accept a particular type of job
Frictional unemployment can be reduced if start learning		the duration of matching is reduced
The job sample is start learning		the number of job offers considered by a job seeker
The higher the wage aspirations, start learning		the higher reservation wage
The model of the reservation wage explains the importance of start learning		the reservation wage and the level of skills for job search
The model of the reservation wage explains how start learning		the level of reservation wage and skills impact the chances to find jobs
The model of the reservation wage indicates start learning		how the unemployed behave in the process of job search
list of markets in the economy: start learning		goods market, money (monetary) market, capital market, investment market, land market, labour market
Labour market- definition: start learning		a place where buyers and sellers of labour come together to determine the pricing and quantity of labour services contracted; a place where labour services are sold and bought
Economic units in the labour market: start learning		employees, employers, unemployed, trade unions, employers unions, labour offices
different types of the labour market (geographical dimensions): start learning		national, regional, local
2 most essential features of the labour market: start learning		heterogeneity of labour services, mobility of labour
heterogeneity of the labour services means people start learning		differ in terms of their skills, motivations, and willingness to take risks
heterogeneity of the labour services means employers start learning		look for employees with certain skills and occupations
mobility means start learning		ability and readiness of people to change their position in the labour market (by changing their skills, places of work, occupations, places of residence)
mobility provides start learning		links between different labour markets (people move from one labour market to another)
types of labour mobility start learning		occupational, educational, skill, spatial
The pecuniary rewrds from selling labour supply are start learning		wages and salaries; fringe benefits (employer provided health insurance, e
The non-pecuniary rewards from selling labour supply are start learning		a pleasant and safe working environment
pecuniary means start learning		relating to or consisting of money
nominal wages start learning		the amount of money paid to the workers in current dollars
real wages start learning		nominal wages divided by some measure of prices
the labour supply curve depicts start learning		an amount of labour which individuals are willing to supply
The labour demand curve depicts start learning		an ammount of labour which an individual firm or a group of firms is willing to hire
Theory of marginal productivity start learning		as more of variable factor of production is used in conjunction with a fixed factor of production- the output of each successive unit of the variable factor will diminish
The total population is comprised of start learning		the working age population and the non working age population
The working age population is comprised of start learning		the economically active and the economically inactive
The economically active are comprised of start learning		the employed and the unemployed
The labour supply consists of start learning		the economically active, or the employed and the unemployed
The labour demand consists of start learning		the employed and the open vacancies
in equilibrium the start learning		labour supply and labour demand are equal
Labour market economics is a part of start learning		economics focused on the analysis of economic processes in the labour market
Labour market economics tries to discover start learning		relationships and regularities in the labour market
The micro approach is the study of start learning		behavious of employees and employers in respose to the general incentives of wages, prices, profits and nonpecuniary aspects of the employment relationship
The macrop approach is the study of start learning		the labour market as a whole
types of labour market indicators start learning		absolute and relative; stock and flow
absolute indicators are based on start learning		absolute variables, for example total unemployment, number of employees fired
relative indicators are start learning		expressed in percentages, and are relations between two absolute variables, for example unemployment rate
Absolute indicators are used to show start learning		tendencies in the investigated labour market
relative indicators are used to start learning		compare different labour markets
stock indicators are based on start learning		stock variables, for example: number of employed, unemployment rate
flow indicators are based on start learning		flow variables, for example: number of employees fired, inflow rate into unemployment
The activity rate shows start learning		the proportion of working age persons who are able and ready to work
The labour force is comprised of start learning		people who are able and ready to work
The unemployment rate shows start learning		the proportion of people at working age, able and ready to work who are unemployed
The unemployment rate indicates start learning		the share of unemployed in total labour force
employers are start learning		profit maximizing units
if wages are flexible start learning		there is a tendency to equalize labour demand and labour supply
unemployment can exist if wages are start learning		not flexible and too high
aggregate means start learning		formed or calculated by the combination of several separate elements; total.
NAIRU is a type of start learning		equilibrium unemployment which stabilizes inflation
AUR stands for start learning		actual unemployment rate
if AUR > NAIRU start learning		we have decreasing inflation
if AUR < NAIRU start learning		we have increasing inflation
if AUR = NAIRU start learning		we have stabilisation of inflation
in order to reduce inflation start learning		AUR needs to be > NAIRU
How can the government keep AUR above or below NAIRU? start learning		using macroeconomic policies (fiscal and monetary) to influence level of aggregate demand for goods and the level of actual unemployment
in order to have effective counterinflation policy start learning		one must accept unemployment as its social cost
DRW stands for start learning		Real wage rates demanded by employees
RWR stands for start learning		real wage rates (which are in line with the economic possibilities of the economy)
the NAIRU level of unemployment is when start learning		real wage rates demanded = realistic wage rates
the higher labour productivity start learning		the higher level of RWR
the faster technical progres start learning		the higher level or RWR
the better situation in the balance of payment in the country start learning		the higher level of RWR
the higher AUR start learning		the lower DRW
the higher generosity of the social policy start learning		the higher DRW
the higher share of long-term unemployment start learning		the higher DRW
the bigger the imbalance in the labour market start learning		the higher DRW
The higher the labour productivity start learning		the lower the level of NAIRU
As a result of unemployment and inactivity, there is a reduction of start learning		the stock of skills or labour force
The Unemployed with reduced skills have start learning		lower chances of finding jobs
the longer the duration of unemployment start learning		the bigger reduction of skills
there is a relationship between GDP growth and start learning		the change in unemployment rate
Okun's Law states that start learning		1% more output growth leads to a reduction in the unemployment rate of 0.4 percent
the replacement ration is a ration between start learning		the level of unemployment benefit and the level of wages or salaries while employed
higher unemployment leads to start learning		lower inflation
unemployed are people start learning		able and ready to work; out of work; looking for jobs
short-term unemployment start learning		< 3 months
medium-term unemployment start learning		4-12 months
long-term unemployment start learning		> 12 months
open unemployment is start learning		unemployment seen in official statistics
hidden unemployment is start learning		the opposite of open; example: part-time workers who would like to work full-time
voluntary unemployment happens when start learning		people are unsatisfied with their current wage
involuntary unemployment happens when start learning		people want to work but they cannot find jobs because of insufficient aggregate demand for goods
short run technological unemployment results from start learning		the impelentation of new technologies which crowd off labour
definition of unemployment policy: start learning		a number of activities and tools taken by the state in order to reduce unemployment
main areas of unemployment policies taken by the state start learning		macroeconomic policy; labour market institutions; labour market policy
Macroeconomic policy consists of the monetary policy which is start learning		run by the central bank
macroeconomic policy consists of the fiscal policy which is start learning		run by the government
restrictive monetary and fiscal policies start learning		reduce the level of aggregate demand
stimulative monetary and fiscal policies start learning		increase the level of aggreagate demand
LMI stands for start learning		labour market institutions
LMIs have influence over start learning		economic units (employers, employees, the unemployed)
economic unit's (employers, employees, the unemployed) decisions have influence over start learning		employment, unemployment and wage changes
Active Labour Market Policy (ALMP) start learning		aimed at improving the situation in the labour market and reducing unemployment
Passive Labour Market Policy (PLMP) start learning		aimed at moderating (mitigating) negaative effects of unemployment

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