EC 202 Chapter Notes - Chapter 15: Deflation, Efficiency Wage, Business Cycle
4 Nov 2016
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How to calculate unemployment rate: 4 steps: first, our of total population, only adults (age 16 and above) are considered, second, categorize adult population into 3: Employed: full time and part time paid employees, or work in own business. Unemployed: persons available for work and tried to find employment in the past for weeks, but are not employed. Exclusions and special cases: technically not everyone over 16 is counted as adult population , prison mates, military personnel, people in permanent nursing homes are excluded, when textbooks say adult population they mean civilian adult population. Just as household transactions and activities did not count as part of gdp, homemakers (stay at home dads) are not considered as employed . Voluntary positions, including internships, also do not count as employment. Econ 202-ch. 15: a self-employed person or someone who works for a family business may not earn money but is considered employed, part-time work counts as employment.
