Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The unemployment rate formula is : The number of unemployed people in the country divided by the total number of workers available in the civilian

The unemployment rate formula is :

  • The number of unemployed people in the country divided by the total number of workers available in the civilian labor force.

The US Bureau of labor statistics has a specific definition of unemployed for determining the percentage.

  • You must be older than 16 and be available to work full time during the past four weeks to be counted as unemployed.
  • You must actively look for work during the same period, and the only exception is temporarily laid off and waiting to be called back to a specific job.

Unemployment Rate=Unemployed/Civilian Labor Force

There are three main steps to measuring inflation:

  • Provide a weighting to the importance of different goods to typical baskets of goods.
  • Measure change in prices
  • Convert into the index-multiplying by the weighting price change.

Household Expenditure Survey

  • Measures what people spend their money on.
  • Help find out typical consumption patterns, the statistics body can create a typical basket of goods.

In the United States, the categories of goods and services can be:

  • Education
  • Restraunts and Hotels
  • Communication
  • Water
  • Electricity,etc.

These baskets of goods should be updated yearly. To calculate inflation, you multiply the weighting of good of the x the new price index and then combine all the new price changes.

Seasonally Adjusted

  • THE INFLATION INDEX CAN ADJUST FOR SEASONAL CHANGES IN PRICE

Adjusting for Quality

  • Measuring inflation is how you measure the price every year; the quality increases.

Inflation measures consider the types of goods may change, so every price increase may not be inflationary but changing goods.

Link: Measuring Inflation - Consumer Price Index - Economics Help

Do you agree or disagree with this discussion?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

OPEC Twenty Years And Beyond

Authors: Ragaei El Mallakh

1st Edition

1317244737, 9781317244738

More Books

Students also viewed these Economics questions

Question

Analytically show that the functions are inverse functions.

Answered: 1 week ago