The average person understands the economic concepts of unemployment and inflation: unemployment reflects number of people out of work, and inflation indicates a rising price level of goods and services. Macroeconomics, however, distinguishes between the labor force, which includes both employed and unemployed (those able and willing to work but not currently working), and those not in the labor force (full time students, nonworking spouses, and retirees). It also differentiates between frictional unemployment (or temporary unemployment), structural unemployment (affecting whole sectors of the economy), and cyclical unemployment (caused by downturns in the economy).