Type your answer to each question directly below the question. Your responses should
be in complete sentences and in your own words. Provide a reference list at the
bottom of the page for any sources used, including your textbook.
1. Provide
examples of each unemployment type and then describe how the unemployment rate
is calculated. Please include the formal
definition of unemployment as part of your answer. (8 points)
2. Why is
the labor force participation rate important to an economy? How has the labor
force participation rate changed over time in the US? What are some major
economic and demographic trends that have affected it? (4 points)
3. What
are the two types of inflation? How would a very low unemployment rate affect
the inflation rate? (3 points)
4. Define
the term misery index. Identify the
current misery index for the United States and one other country. What do these
numbers tell you with respect to what is happening in the two countries? What
effect does a falling or rising misery index have on elected officials? (5
points)