Examlex
Explain why American jails are referred to as the "ultimate ghetto." How can this stereotype be changed?
Nominal Wage Rates
The amount of money paid to an employee by an employer in current prices, without adjusting for inflation.
Real Wages
Wages or salaries adjusted for inflation, reflecting the true purchasing power of income.
Potential Output
The economy’s maximum sustainable output, given the supply of resources, technology, and rules of the game; the output level when there are no surprises about the price level.
Natural Rate
The natural rate refers to the long-term unemployment rate that an economy experiences under normal conditions, unaffected by short-term cyclical fluctuations.
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