| A | B |
|---|
| frictional unemployment | unemployment that occurs when people take time to find a job |
| seasonal unemployment | unemployment that occurs as a result of harvest schedules or vacations, or when industries slow or shut down for a season |
| structural unemployment | unemployment that occurs when workers' skills do not match the jobs that are available |
| cyclical unemployment | unemployment that rises during economic downturns and falls when the economy improves |
| census | an official count of the population |
| unemployment rate | the percentage of the nation's labor force that is unemployed |
| discouraged worker | a person who wants a job but has given up looking |
| inflation | a general increase in prices |
| purchasing power | the ability to purchase goods and services |
| price index | a measurement that shows how the average price of a standard group of goods changes over time |
| Consumer Price Index | a price index determined by measuring the price of a standard group of goods meant to represent the "market basket" of a typical urban consumer |
| market basket | a representative collection of goods and services |
| inflation rate | the percentage rate of change in price level over time |
| creeping inflation | inflation that remains low for a long time |
| chronic inflation | inflation that rises steadyily from month to month over a long period |
| hyperinflation | inflation that is out of control |
| quantity theory | theory that too much money in the economy causes inflation |
| demand-pull theory | theory that inflation occurs when demand for goods and services exceeds existing supplies |
| cost-push theory | theory that inflation occurs when producers raise prices in order to meet increased costs |
| wage-price spiral | the process by which rising wages cause higher prices, and higher prices cause higher wages |
| fixed income | income that does not increase even when prices go up |
| deflation | a sustained drop in the price level |
| poverty threshold | the income level below which income is insufficient to support a family or household |
| poverty rate | the percentage of people who live in households with income below the offficial poverty line |
| income distribution | how the nation's total income is distributed among its population |
| food stamps | government-issued coupons that recipients exchange for food |
| Lorenz Curve | the curve that illustrates income distribution |
| enterprise zone | area where companies can locate free of certain local, state, and federal taxes and restrictions |
| block grant | federal funds given to the states in lump sums |
| workfare | a program reuiring work in exchange for temporary assistance |
