17 The ONS reported the following reasons for economic inactivity in August to October 2010 (the numbers

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17 The ONS reported the following reasons for economic inactivity in August to October 2010 (the numbers are thousands):

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a Which of the above categories were counted in the official unemployment rate? Explain your answer.
b Which of the above categories of reasons for economic inactivity would you expect to fluctuate with real GDP over the business cycle?
c What are the implications of your answer to part

(b) for the mismeasurement of the unemployment rate?

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Economics

ISBN: 9781118150122

10th European Edition

Authors: Michael Parkin, Dr Melanie Powell, Prof Kent Matthews

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