Economics, 3rd Edition

standard of living 

refers to the amount of goods and services 

that can be purchased by the population of a country. Usually 

measured by the inflation-adjusted (real) income per head of 

the population

stationary data 

time series data that have a constant mean 

value over time

stochastic trend 

where trend variables change by some 

random amount in each time period

stock (or share or equity) 

a claim to partial ownership in 

a firm

store of value 

an item that people can use to transfer 

purchasing power from the present to the future

strike 

the organized withdrawal of labour from a firm by a union

structural deficit 

a situation where a government’s deficit is 

not dependent on movements in the economic cycle

structural unemployment 

unemployment that 

results because the number of jobs available in some labour 

markets is insufficient to provide a job for everyone who 

wants one