Unemployment & Inflation
All 16 Unemployment & Inflation terms in the AP Economics glossary — each with a clear, exam-accurate definition. Tap any term for the full explanation, formula, and related interactive graph.
Cost-push inflation is caused by increased costs.
Cyclical unemployment is unemployment that occurs due to a decline in economic activity during a recession.
Deflation is a sustained price decrease.
Demand-pull inflation is caused by excess demand.
Discouraged workers are people who have given up looking for work because they believe no jobs are available for them.
Disinflation is a decrease in inflation rate.
Frictional unemployment is short-term unemployment that occurs when people are between jobs or looking for their first job.
Full employment is the level of employment where there is no cyclical unemployment.
Inflation is a sustained price increase.
Inflation rate is the percentage change in CPI.
The labor force is the total number of people aged 16 and over who are employed or actively seeking employment.
The labor force participation rate is the percentage of the civilian non-institutional population that is in the labor force.
The natural rate of unemployment is the lowest level of unemployment that can be sustained without causing inflation to rise.
Real wages are wages adjusted for inflation, while nominal wages are the actual dollar amount of wages received.
Structural unemployment is long-term unemployment that occurs when workers' skills do not match the jobs available.
Unemployment rate is the percentage of unemployed workers.