Describe what the unemployment rate and the employment rate measure. If we were to sum the unemployment rate and the employment rate, would that sum be equal to one hundred percent? Explain why or why not
The unemployment rate measures the percentage of the civilian labor force that is unemployed and is computed by taking the number of persons unemployed and dividing by the civilian labor force. The employment rate is a measure of the percentage of the civilian noninstitutional population that is employed and is calculated by taking the number of people employed and dividing by the civilian noninstitutional population. Since these two calculations have different denominators (the civilian labor force for the unemployment rate and the civilian noninstitutional population for the employment rate) their sum would not be equal to one hundred percent.
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Goods X and Y are complementary goods. An increase in the price of good X has occurred. In the market for good Y this will lead to
A) an increase in price and a decrease in quantity. B) an increase in price and an increase in quantity. C) a decrease in price and a decrease in quantity. D) a decrease in price and an increase in quantity.
The money, time, and opportunity used to change prices to keep pace with inflation are called:
A. menu costs. B. shoe-leather costs. C. tax distortions. D. the velocity of inflation.