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external shock (E6)<br />A large unanticipated change in world economic conditions which impacts upon a particular national economy. Shocks can take many forms, including a shift in the TERMS OF TRADE, a slowdown in the growth of world export demand and an increase in the interest rates set by world financial markets. However, the major shocks of the 1970s, particularly the increase in the price of oil, had an uneven impact on the prosperity of particular nations with producing countries welcoming the shocks and consumers having to make major adjustments.<br /><em>See also:</em> structural adjustment policy; supply-side shocks
<strong>Income-contingent repayment schedule</strong> – A repayment schedule for some Direct Loans under which the borrower' s monthly payment amount is adjusted annually, based on the borrower' s income, family size, and debt amount.
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hidden unemployment (J6)<br />1 Underemployed labour. A comparison of PRODUCTIVITY or wage levels of different sectors of an economy indicates how much employed labour is working below its capacity. SOVIET-TYPE ECONOMIES were noted for their low wages and low productivity: the state's FULL-EMPLOYMENT policy and willingness to pay the wage bill gave managers no incentive to economize in the use of labour. Although the Soviet labour force enjoyed easy, secure employment, the economy suffered from chronic labour shortages and poor product quality. PERESTROIKA sought to reduce this problem. East European economies still have considerable labour reserves in their agricultural sectors.<br /> 2 Part of a population excluded from a measure of unemployment because of the definition of unemployment used.
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