26 - Recession two consecutive quarter of negative GDP...

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Recession – two consecutive quarter of negative GDP growth - Length with which people are without a job is important factor as well Describing unemployment - Three basic issues: o How does government measure the economy’s rate of unemployment? o What problems arise in interpreting the unemployment data? o How long are the unemployed typically without work (6% for 2 months vs. 2 years) Substitution bias and measuring the character of a country are problems with CPI and GDP BLS builds labor force statistics - Every month 60,000 people answer a bunch of questions about their unemployment state – infer population of US from this sampling - Based on “adult population” 16-65 also called “working age population” or “civilian labor force” - Based on the answer to the survey questions, the BLS place adult population in 3 groups o Employed: paid employees, self employed, and unpaid workers in a family business. In particular, a person is considered employed if he or she has
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26 - Recession two consecutive quarter of negative GDP...

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