The mobility of capital and labor has led to a shift from local to international markets resulting in moving facilities to other countries. What is this shift called?

globalization

New technology, discovery of new resources, lack of education, and changes in consumer demand can lead to this type of joblessness

Structural unemployment

The effect that inflation has on the elderly, more than any

other group, because they live on a fixed income

Loss of purchasing power

The Current Population Survey is conducted by the United

States Bureau of the Census for this federal agency.

Bureau of Labor and Statistics (BLS)

This simple model used by economists illustrates how income is distributed throughout the economy

Lorenz Curve

A measure used by the government to offset the impact of the Social Security

payroll tax on low income families.

Earned Income Tax Credit

A single parent with one child whose income is $13,000 falls

below this income level

The poverty threshold

If a worker’s wages increases with the rate of inflation this

stays the same

Real income

If the Federal Reserve lowers the federal funds rate, but aggregate

supply does not increase, what will increase?

Price(MV = PQ)

If the money supply(M) increases, but aggregate supply(Q) does not also increase, price must increase in order for the market to establish a new equilibrium.

The previous slide illustrates this theory.

Quantity Theory of Inflation

A student who has just graduated from college and is now looking for a job is said to

be experiencing this

Frictional unemployment

Total Population, divided by the number of people currently looking for work, times 100.

Unemployment rate

Downturns in the business cycle lead to this type of

unemployment

Cyclical unemployment

The maximum amount of time a person can collect

unemployment under normal conditions

26 weeks

Area where companies can locate to reduce the cost of

running a business

Enterprise Zones

(to reduce taxes and revitalize rundown areas in the inner cities)

This group of workers are not represented in the unemployment rate

Underemployed or discouraged workers

This group of individuals make up the largest portion of those

living in poverty

children

This type of resident is most likely to be living in poverty because of the lack of job

availability

Inner city

Or

Rural

This type of anti-poverty program rewards parents for

attending PTA meetings, volunteering and good school attendance for their children

Incentive programs

This program replaced the AFDC in order to move families from

welfare dependence to employment

TANF (Temporary Aid to Needy Families)

Workers’ skills do not match those needed for the jobs available describes this…

Structural unemployment

This is the only type of joblessness that exists in times

of full employment

Frictional unemployment

(3 to 5 percent)

Farmers typically experience this on a yearly basis

Seasonal unemployment

The decline of manufacturing jobs in the U.S. has given rise to

this…

Low-skill service jobs

Increased costs lead to increased prices which lead to increased wages describes this

Wage-price spiral