Suppose we divide Canada into three regions: the West, the Centre, and the East. Each region has
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Suppose we divide Canada into three regions: the West, the Centre, and the East. Each region has an unemployment rate, defined as the number of people unemployed, expressed as a fraction of that region's labour force. The table that follows shows each region's unemployment rate and the size of its labour force.
b. Now compute an unemployment rate for Canada using weights that reflect the size of that region's labour force as a proportion of the overall Canadian labour force. Explain the difference in this unemployment rate from the one in part (a). Is this a "better" measure of Canadian unemployment? Explain why.
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Related Book For
Microeconomics
ISBN: 978-0321866349
14th canadian Edition
Authors: Christopher T.S. Ragan, Richard G Lipsey
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