1. Measurement of Macroeconomic Performance

What is Inflation

Inflation is the persistent increase of price in an economy in a year

What is CPI/RPI and Cons

How do we calculate Index Numbers

What is Voluntary Unemployment

There are jobs available but the individual is not willing to work at current market wage rates

What is Involuntary Unemployment

When an individual is willing and able to work at current market wage rates but is unable to find employment

What is the Labour Force Survey

A measure of unemployment that is based on a sample of households, conducted by the Labour Force Survey. An individual is counted as unemployed if:

• They do not have a job, they want to work, have actively sought work in the last four weeks, and are able to start work within the next two weeks.

• They are out of work, have found a job, and are waiting to start it in the next two weeks.

Cons of Labour Force Survey

Sampling Errors

Cost

Discouraged Workers (Hidden Unemployed)

Inactive Groups

The under-employed

Disparities

What is the Claimant Count

The number of people who are out of work and claiming Job Seekers Allowance

Cons of Claimant Count

Difficult to compare between countries

Not everyone will claim

Not everyone can claim

Could be subject to fraud