Define unemployment rate and labor force participation rate

Reference no: EM131890843

Assignment - Unemployment and Inflation: Two Persistent Problems in the Arab World

Learning Objectives -

Define unemployment rate and labor force participation rate and understand how they are computed.
Identify the three types of unemployment.
Explain what factors determine the unemployment rate.
Define price level and inflation rate and understand how they are computed.
Use price indexes to adjust for the effects of inflation.
Distinguish between the nominal interest rate and the real interest rate.
Discuss the problems that inflation causes.

Problem - Calculating Real Average Hourly Earnings

Year	Nominal Average Hourly Earnings	CPI (1984 = 100)	Real average Hourly Earnings (1984 Dollars)
2005	$16.13	195.3
2006	16.76	201.6
2007	17.42	207.3

Textbook - Economics, Arab World Edition R. Glenn Hubbard, Anthony Patrick O'Brien, Ashraf Eid, Amany El Anshasy,

Chapter 8: Unemployment and Inflation.

Reference no: EM131890843

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