Term
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Definition
| the wage measured in dollars of the year in question; the dollar amount on a paycheck |
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Term
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Definition
| the wage measured in dollars of constant purchasing power; the wage measure in terms of the quantity of goods and services it buys |
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Term
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Definition
| the economy's maximum sustainable output, given the supply of resources, technology, and rules of the game; the output level when there are no surprises about the price level |
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Term
| natural rate of unemployment |
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Definition
| the unemployment rate when the economy produces its potential output |
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Term
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Definition
| in macroeconomics, a period during which some resources prices, especially those for labor, are fixed by explicit or implicit agreements |
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Term
| short-run aggregate supply (SRAS) curve |
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Definition
| a curve that shows a direct relationship between the actual price level and real GDP supplied in the short run, other things constant, including the expected price level |
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Term
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Definition
| the price level and real GDP that result when he aggregate demand curve intersects the short-run aggregate supply curve |
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Term
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Definition
| the amount by which actual output in the short run exceeds the economy's potential output |
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Term
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Definition
| in macroeconomics, a period during which wage contracts and resource price agreements can be renegotiated; there are no surprises about the economy's actual price level |
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Term
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Definition
| the price level and real GDP that occurs when (1)The actual price level equals the expected price level, (2) real GDP supplied equals potential output, and (3) real GDP supplied equals real GDP demanded |
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Term
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Definition
| the amount by which actual output in the short run falls short of the economy's potential output |
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Term
| long-run aggregate supply (LRAS) curve |
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Definition
| a vertical line at the economy's potential output; aggregate supply when there are no surprises about the price level and all resource contracts can be renegotiated |
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Term
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Definition
| A situation in which workers and employers fail to achieve an outcome that all would prefer |
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Term
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Definition
| unexpected events that affect aggregate supply, somethings only temporarily |
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Term
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Definition
| unexpected events that increase aggregate supply, sometimes only temporarily |
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Term
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Definition
| unexpected events that reduce aggregate supply, sometimes only temporarily |
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Term
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Definition
| the theory that the natural rate of unemployment depends in part on the recent history of unemployment; high unemployment rates increase the natural rate of unemployment |
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