Reference no: EM132813473

Describe the formula(s) used to determine the unemployment rate.

According to The Balance, the formula used for determining the unemployment rate is the number of unemployed people in the country divided by the total number of workers available in the civilian labor force. You must also determine what the term "unemployed". The term " unemployed" is considered a person who is over the age of 16 and has be available to work during the past four weeks. You must have actively looked for employment during that same time period. The only exception is if you temporarily laid off and are waiting to be called called back to work for a specific job.

Reference:

Amadeo, K. (2020). The Balance. https://www.thebalance.com/unemployment-rate-formula-3305515

Describe how inflation is measured using the Consumer Price Index (CPI).

Describe how inflation is measured using the Consumer Price Index (CPI).

We first have to define consumer price index. Consumer Price Index (CPI) is a measure of the average change overtime in the prices paid by urban consumers for a market basket of consumer goods and services. According to the U.S. Bureau of Statistics, consumer price index measures inflation as experienced by consumers in their day-to-day living expenses. Consumer Price Index is generally considered the best measure for adjusting payments to consumers when the intent is to allow consumers to purchase at today's prices, a market basket of goods and services equivalent to one that they could purchase in an earlier period.

Reference:

The U.S Bureau of Labor Statistics(n.d.). https://www.bls.gov/cpi/questions-and-answers.htm

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