Definitions Unemployment is a situation that exists when people of working age, who are available for work and actively seeking employment, cannot find a job. Full employment is when the number of jobs available is equal to the number of people actively seeking...
Problems with CPI Different income earners may experience a different rate of inflation when their pattern of consumption is not accurately reflected by the CPI. The wieghts of particular products are fixed so the inflation rate may be overestimated. Substitution...
Low unemployment Unemployment: when a person is actively searching for a job, which they are able and willing to do, but cannot find one. Unemployment rate: the proportion of unemployed in the labour force =number of unemployed/labour force x 100 Labour force: the...
Weighted price index (HL):weights are attached to each category of good or service, these are then multiplied to the price index of each item of spending for a given year. The price index a year: the sum of (price x weight) / sum of the weights