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Global Macroeconomics
1.Measuring Unemployment
The Bureau of Labor Statistics issues a monthly news release with details about the employment situation.
Based on this news release, and/or other relevant official data, answer the following questions:
a.Which groups in US society have the highest unemployment rates?Present evidence.
b.How many people have been unemployed for at least 27 weeks (i.e. about half a year)?
c.How is the labor force participation rate calculated?Be precise.
d.What was the unemployment rate in August 2017? And what was the underemployment rate (i.e. the percentage of people working part time but who wanted to work full-time)?
e.Which sectors of the economy added the most jobs in August, compared with July?
f.What happened to the length of the workweek in August, compared with July?
g.How many people were employed in the US in August 2017? And in August 2016?
2.Graphing Inflation
The attached file has annual data from the Bureau of Labor Statistics on the CPI from 1966 through 2016 . The data are in the form of an index.
a.Calculate the annual rate of inflation.
b.Graph the inflation rate over time.
c.What patterns does the graph show about inflation over the past half-century?Are we currently in a period of low, moderate, or high inflation?
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3.Inflation in Venezuela
How high is inflation in Venezuela? Suggest a couple of reasons why it is so high.
4.True, False, or Uncertain
Indicate whether the following statements are true, false, or uncertain. Where the statement is false, explain why.
a.A system of unemployment insurance raises the unemployment rate.
b.The unemployment rate as calculated by theBureau of Labor Statistics systematically understates the true extent of unemployment during recessions.
c.Leslie Doe is 16 years old and has no paid job, but regularly spends 20 hours each week helping in the family convenience store. Leslie is therefore out of the labor force.
d.Anne Boyd is not currently working, but she applied for a job as a trucker two weeks ago, and awaits a reply. She is therefore unemployed.
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