Log out Go to App
Go to App

Learning Materials

Features

Discover

Chapter 7: Q.7.1 (page 142)

Explain how the U.S. government calculates the official unemployment rate

Short Answer

Expert verified

The U.S government conducts a survey consistently called the Current Population Survey to measure the degree of unemployment in the country.

Step by step solution

01

Introduction

Unemployment refers to the situation when a person is willing and able to work and is looking for jobs but is not able to find one. A high unemployment rate is harmful to the economy.

02

Explanation

The current population survey covers many households. The residents of these households are asked questions about their status of work. Based on the responses to these questions the Bureau of Labor Statistics estimates the all-out labor force which gets partitioned into sections of utilized and unemployed. Once, the labor force is isolated into utilized and unemployed, the Bureau estimates the current unemployment rate percentage of the labor force that is unemployed.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

The cost of a nation's market basket in the base year is 1,200$, and the current year's price index equals 125 . What is the cost of the market basket in the current year?

Why do you suppose that some economists argue that if part-time employment rises while unemployment remains unchanged, the economy has moved further from full employment?

Why do you suppose that some economists have suggested that "irrational exuberance"-unjustified optimism about future economic performance can contribute to business expansions?

Suppose that in 2017, a typical U.S. student attending a state-supported college bought 10 textbooks at a price of 100\( per book and enrolled in 25 credit hours of coursework at a price of 360\) per credit hour. In 2018, the typical student continued to purchase 10 textbooks and enrol in 25 credit hours, but the price of a textbook rose to 110\( per book, and the tuition price increased to 400\) per credit hour. The base year for computing a "student price index" using this information is 2017. What is the value of the student price index in 2017? In 2018? Show your work.

In 2016, the cost of a market basket of goods was \(2,000. In 2018, the cost of the same market basket of goods was \)2,100. Use the price index formula to calculate the price index for 2018 if 2016 is the base year.
See all solutions

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free