How is the unemployment rate calculated? Include in your answer the process by which the U.S. Census Bureau classifies the data it collects in its Current Population Survey
What will be an ideal response?
The U.S. Census Bureau conducts the Current Population Survey which asks questions about the age and employment status of household members. The population is divided into the working-age population (everyone 16 or older who is available to work) and all the others. The working age population is divided into the labor force and those not in the labor force. The labor force includes all those who are working (either part-time or full-time) and those who are unemployed. The unemployment rate is the ratio of the unemployed to the labor force multiplied by 100 to convert it into a percentage.
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When a German company purchases a U.S. company for $20 million, in the balance of payments the value of that transaction is recorded in the
A) current account. B) investment account. C) official purchases account. D) capital and financial account. E) purchase account.
Fluctuations in the relative demand for checking deposits versus money-market mutual funds causes instability in the overall demand for
A) M1 but not M2. B) M2 but not M1. C) M2 and M1. D) neither M1 nor M2.