According to the memo, what are some precautions one should take in reading the Employment Situation Report for a given month? Since the report is issued by the federal government, the job numbers are often manipulated by officials for partisan gain and so should be taken with a grain of salt. Because revisions to the nonfarm employment estimate can be substantial, one shouldn't read too much into the number for any one month. □ Changes in total nonfarm employment are volatile, so one should focus less on one month's number than on an average over several months. The implication of the unemployment rate regarding slackness in the labor market is not entirely clear, as estimates of the natural rate of unemployment vary somewhat over time.
According to the memo, what are some precautions one should take in reading the Employment Situation Report for a given month? Since the report is issued by the federal government, the job numbers are often manipulated by officials for partisan gain and so should be taken with a grain of salt. Because revisions to the nonfarm employment estimate can be substantial, one shouldn't read too much into the number for any one month. □ Changes in total nonfarm employment are volatile, so one should focus less on one month's number than on an average over several months. The implication of the unemployment rate regarding slackness in the labor market is not entirely clear, as estimates of the natural rate of unemployment vary somewhat over time.
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Transcribed Image Text:According to the memo, what are some precautions one should take in reading the Employment Situation Report for
given month?
Since the report is issued by the federal government, the job numbers are often manipulated by officials for partisan
gain and so should be taken with a grain of salt.
Because revisions to the nonfarm employment estimate can be substantial, one shouldn't read too much into the number
for any one month.
Changes in total nonfarm employment are volatile, so one should focus less on one month's number than on an average
over several months.
The implication of the unemployment rate regarding slackness in the labor market is not entirely clear, as estimates of
the natural rate of unemployment vary somewhat over time.
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