Macroeconomics

Unemployment rate:

The percentage of those in

the labor force who do not have jobs.

Unit of account:

The measure in which prices

and other accounting records are recorded; one of

the functions of money. (Cf. medium of exchange,

store of value.)

Utility:

A measure of household satisfaction.

Value added:

The value of a firm’s output minus the

value of the intermediate goods the firm  purchased.

Velocity of money:

The ratio of nominal expen-

diture to the money supply; the rate at which money

changes hands.

Wage:

The amount paid for one unit of labor.

Wage rigidity:

The failure of wages to adjust to

equilibrate labor supply and labor demand.

Work in process:

Goods in inventory that are in

the process of being completed.