Glossary Category: Macroeconomy - Page 3 - 3auk

quantity theory of money

The quantity theory of money is an economic principle stating that the total amount of money in an

For money to function effectively, it must possess several key characteristics: Durability: It must be strong enough to

Money serves four main purposes in an economy: Medium of exchange: Money is widely accepted as payment for

Money is an item that people generally accept as payment for goods and services or to settle debt.

Occupational mobility of labour is the ease with which workers can change from one job, industry, or occupation

Geographical mobility of labour refers to how easily and willingly workers can move to different regions or countries

Labour mobility is the ease with which workers can change their jobs, industries, or locations to find new

The natural rate of unemployment (NRU) is the unemployment rate that exists in an economy when it is

Involuntary unemployment occurs when people are willing and able to work at the current wage, but they cannot

Voluntary unemployment occurs when individuals decide not to accept jobs even though they are available at the current