Question
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?
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