1. Anyone who is not classified as either employed or unemployed is not in the labor force.
2. Marginally attached workers are people who once held productive jobs but have given up looking for work.
3. Discouraged workers are people who want jobs but have stopped looking for work for job-related reasons.
4. Frictional employment is unemployment attributed to workers moving from one job to another.
5. Regular fluctuations in jobs due to regular occurrences such as holidays, school schedules, and industry production schedules are called seasonal unemployment.
6. Aggregate supply is the total amount of goods and services produced throughout the economy.
7. Supply shocks result in overall higher prices.
8. To construct the consumer price index, the Bureau of Labor Statistics selects a sample of commonly purchased consumer items, called the market basket
9. The worst degree of inflation is called hyperinflation.
10. High interest rates can decrease consumer spending, particularly on goods that are usually purchased on credit.
11. Income inequality in the U.S. had become greater than in any other large industrialized country.
12. The poverty threshold is the lowest income level that a family needs to maintain a basic standard of living.
13. A Lorenz Curve illustrates the amount that a nation's distribution of income varies from a perfectly proportional distribution of income.
14. The data used to plot a Lorenz Curve can also be used to compute the Gini Index. The Gini Index is another statistical measure of income inequality.
15. Rapid changes in technology have led to a drop in demand for lower-skilled workers.