Money serves four main purposes in an economy: Medium of exchange: Money is widely accepted as payment for
Glossary Category: Economics
money (economics)
Money is an item that people generally accept as payment for goods and services or to settle debt.
policies to reduce unemployment
Policies to reduce unemployment are actions taken by the government to lower the number of people without jobs,
occupational mobility of labour
Occupational mobility of labour is the ease with which workers can change from one job, industry, or occupation
geographical mobility of labour
Geographical mobility of labour refers to how easily and willingly workers can move to different regions or countries
labour mobility
Labour mobility is the ease with which workers can change their jobs, industries, or locations to find new
natural rate of unemployment
The natural rate of unemployment (NRU) is the unemployment rate that exists in an economy when it is
involuntary unemployment
Involuntary unemployment occurs when people are willing and able to work at the current wage, but they cannot
voluntary unemployment
Voluntary unemployment occurs when individuals decide not to accept jobs even though they are available at the current
hysteresis
Hysteresis describes a situation where high unemployment remains high for a long time and becomes difficult to fix,