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Definition of Full Employment
The level of employment corresponding to the natural rate of unemployment.
The level of output produced by the economy when operating at the natural rate of unemployment.
An attempt to maintain the economy at or near full employment by frequent changes in policy.
The difference between full employment output and current output.
Unemployment that increases when the economy enters a recession and decreases when the economy enters a boom.
A federal Act requiring employers to pay a tax on the wages paid to their employees, which is then used to create a
Unemployment associated with people changing jobs or quitting to search for new jobs.
The cost of a product/service that includes an allocation of all the (production and
A method of accounting for petroleum exploration and development expenditures
see absorption costing
A bond with a coupon equal to the going market rate, thereby, the bond is selling at par.
The period of trade credit given by a supplier to its customer.
The security pledges for larger municipal bond issuers, such as states and
See: financial lease.
Also called dirty price, the price of a bond including accrued interest. Related: flat price.
Also called rental lease. Lease in which the lessor promises to maintain and insure the
Fully diluted earnings per shares
Earnings per share expressed as if all outstanding convertible securities
Fully modified pass-throughs
Agency pass-throughs that guarantee the timely payment of both interest and
Institutionally Induced Unemployment
Unemployment due to institutional phenomena such as the degree of labor force unionization, the level of discrimination, and government policies such as unemployment insurance programs, minimum wages, or regulations on business.
Natural Rate of Unemployment (NRU)
The level of unemployment characterizing the economy in long-run equilibrium, determined by the levels of frictional, structural, and institutionally induced unemployment. At this rate of unemployment, inflation should be constant, so it is sometimes called the nonaccelerating inflation rate of unemployment, or NAIRU.
Self-Employment Contributions Act (SECA)
A federal Act requiring self-employed business owners to pay the same total tax rates for Social Security and
Unemployment due to a mismatch between the skills or location of labor and the skills or location required by firms.
A program in which workers and firms pay contributions and workers collect benefits if they become unemployed.
The ratio of the number of people classified as unemployed to the total labor force.
Fraction of the labor force that is not employed.
Uniformed Services Employment and Reemployment Rights Act of 1994
A federal act that minimizes the impact on people serving in the Armed Forces
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