unemployment rate is a measure of
is it frictional unemployment
what part of the government is in charge of fiscal policy and monetary policy??
what should congress and the president do to help end an economic recession
is it to raise taxes and lower government spending??
and what should the federal reserve do to help end an economic recession
is it
decrease discount rate
increase reserve requirements
sell securities
increase interest rates
pump less money into the economy
So many questions!
1. It measures unemployment in relation to the pool of available workers. Friction is not involved.
2. Fiscal policy is a function of the Congress and the president. Monetary policy is largely reserved to the Federal Reserve Bank.
3. What can be done to help in recession is open to political debate. Some say INCREASE government spending, some say lower taxes so people have more pocket money to spend...some say something else.
4. Decrease the discount rate is the first thing they usually do.
Make sure you understand the difference between fiscal policy and monetary policy. They are not the same.
And please read your text. It may take sides in the policy debate about how government can help in a recession. in all truth, government action can ease the effects of a recession or depression, but can do little to fix it. But see what your assigned reading says, don't take my word for it.
The unemployment rate is a measure of the percentage of the labor force that is unemployed and actively seeking employment. It is often used as an economic indicator to assess the health of an economy and the available job opportunities.
To calculate the unemployment rate, you need two key pieces of information: the number of unemployed individuals and the size of the labor force.
1. Determine the number of unemployed individuals: This includes individuals who are actively seeking employment but currently do not have a job. This information is typically collected through surveys and government data sources.
2. Calculate the labor force: The labor force consists of individuals who are either employed or actively seeking employment. It does not include individuals who are not working and not looking for work, such as retirees, full-time students, or individuals who are unable to work due to disability or other reasons.
Once you have these two figures, you can calculate the unemployment rate using the following formula:
Unemployment Rate = (Number of Unemployed Individuals / Labor Force) x 100
For example, if there are 5 million unemployed individuals and a labor force of 100 million, the unemployment rate would be (5 million / 100 million) x 100 = 5%.
The unemployment rate is an essential metric for policymakers, economists, and businesses as it provides insights into the health of the labor market, potential labor shortages, and the overall state of the economy.