By the end of this chapter you will be able to:
1. Define the labor force and give the official definition of employment.
2. Provide the official definition of the unemployment rate.
3. Describe the limitations of the unemployment rate statistic and outline the impact of the “discouraged worker effect” on official unemployment statistics.
4. Distinguish among the three types of unemployment—frictional, structural, and cyclical—and give examples of each.
5. Define the natural rate of unemployment and relate it to the concepts of full employment and the full-employment output level.
6. Describe the economic and social costs of unemployment.
7. Define inflation and the inflation rate.
8. Give the rationale ...