Unit 5: Unemployment and the Cost of Living

Journal

• According to the textbook, the changes in the macroeconomic indicators affect the economic decisions of the 3 economic agents (household, firms, and government). Assume you are a business owner (manager). How do you use macroeconomic indicators in your business plan and strategy? Why are the indicators relevant for business decision making process? How do they affect business profit?
• There is an ongoing debate on how the unemployment rate is measured in the economy. Some people argue that the reported (official) unemployment rate actually understates the extent of unemployment in the economy. What are your opinions on official rate of unemployment? How do you think the official unemployment data can be improved to be a better measure of unemployment in the economy?