This preview shows page 1. Sign up to view the full content.
Unformatted text preview: The drawbacks of GDP are that it fails to count non-market activity, the value of leisure, and the costs of environmental damage. Also, GDP counts "bads," such as the cost of rebuilding bridges, roads, and structures that follow a natural disaster. Therefore, a natural disaster such as an earthquake, hurricane, or tornado may actually lead to an increase in real GDP. Labor Force = unemployed + employed Unemployment rate: the % of members of labor force who are unemployed # Unemployed Workers / Labor Force Participation Rate: the % of the working-age population in the labor force Labor Force / Working-Age Population Working Force = Employed + Unemployed...
View Full Document
- Spring '11