Employment Act Of 1946


DEFINITION of 'Employment Act Of 1946'

An act of legislation enacted by the United States Congress that charged the government with the responsibility of maintaining a high employment level of labor and price stability. These two goals are in direct conflict with each other, because as full employment is achieved consistently over time, demand-pull inflation will result.

BREAKING DOWN 'Employment Act Of 1946'

The employment act of 1946, which was enacted under President Truman, resulted in the Council of Economic Advisors. The council is charged with assisting the President in preparing the annual economic report, advising the President on certain policies, and collect economic data and report on the economic growth and trends within the U.S. economy.

  1. Inflation

    The rate at which the general level of prices for goods and services ...
  2. Full Employment

    A situation in which all available labor resources are being ...
  3. Consumer Price Index - CPI

    A measure that examines the weighted average of prices of a basket ...
  4. Economics

    A social science that studies how individuals, governments, firms ...
  5. Demand-Pull Inflation

    A term used in Keynesian economics to describe the scenario that ...
  6. Department Of Labor - DOL

    A U.S government cabinet body responsible for standards in occupational ...
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