Economics Today: The Macro View (19th Edition) (Pearson Series in Economics)
19th Edition
ISBN: 9780134478760
Author: Roger LeRoy Miller
Publisher: PEARSON
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Question
Chapter 7, Problem 7.1LO
To determine
:
The way the U.S government calculates the official
Concept Introduction:
Unemployment rate:
It is defined as the fraction of the labor force that is jobless at a given time period. Unemployment rate is calculated by dividing total number of unemployed or jobless people by the total number of people in the labor force.
Expert Solution & Answer
Explanation of Solution
Answer:
The U.S government under the division of Bureau of Labor Statistics ( BLS ) conducts a survey every month called the Current Population Survey ( CPS ) in order to measure the extent of unemployment in the country.
This survey covers about 60,000 households. The residents of these households are asked questions about their status of employment.
Based on the responses to these questions, the Bureau of Labor Statistics estimates the total labor force which gets divided into sections of employed and unemployed.
Once, the labor force is divided into employed and unemployed, the Bureau estimates the current unemployment rate (the percentage of labor force that is unemployed).
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Students have asked these similar questions
In a small open economy with a floating exchange rate, the supply of real money balances is fixed and a rise in government spending ______
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Raises the interest rate so that net exports must fall to maintain equilibrium in the goods market.
Cannot change the interest rate so that net exports must fall to maintain equilibrium in the goods market.
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Raises the interest rate, so that income must rise to maintain equilibrium in the money market.
Suppose a country with a fixed exchange rate decides to implement a devaluation of its currency and commits to maintaining the new fixed parity. This implies (A) ______________ in the demand for its goods and a monetary (B) _______________.
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(A) expansion ; (B) contraction
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Assume a small open country under fixed exchanges rate and full capital mobility. Prices are fixed in the short run and equilibrium is given initially at point A. An exogenous increase in public spending shifts the IS curve to IS'. Which of the following statements is true?
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Chapter 7 Solutions
Economics Today: The Macro View (19th Edition) (Pearson Series in Economics)
Ch. 7 - Prob. 7.1LOCh. 7 - Prob. 7.2LOCh. 7 - Prob. 7.3LOCh. 7 - Prob. 7.4LOCh. 7 - Prob. 7.5LOCh. 7 - Prob. aFCTCh. 7 - Prob. bFCTCh. 7 - Prob. cFCTCh. 7 - Prob. dFCTCh. 7 - Prob. eFCT
Ch. 7 - Prob. 1CTQCh. 7 - Prob. 2CTQCh. 7 - Prob. 1FCTCh. 7 - Prob. 2FCTCh. 7 - Prob. 1PCh. 7 - Prob. 2PCh. 7 - Prob. 3PCh. 7 - Prob. 4PCh. 7 - Prob. 5PCh. 7 - Prob. 6PCh. 7 - Prob. 7PCh. 7 - Prob. 8PCh. 7 - Prob. 9PCh. 7 - Prob. 10PCh. 7 - Prob. 11PCh. 7 - Prob. 12PCh. 7 - Prob. 13PCh. 7 - Prob. 14PCh. 7 - Prob. 15PCh. 7 - Prob. 16PCh. 7 - Prob. 17PCh. 7 - Prob. 18PCh. 7 - Prob. 19PCh. 7 - Prob. 20PCh. 7 - Prob. 21PCh. 7 - Prob. 22P
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