Question
5. Real-Time Data Analysis Exercise Click the following link to view Current Population Survey (Household Survey) data from FRED Then use that data to answer the following questions. 3 Real-time data provided by Federal Reserve Economic Data (FRED), Federal Reserve Bank of Saint Louis. Using data from FRED, enter the values from October, 2017 for the four variables listed below (shown in FRED as 2017 10-01). (Enter your responses exactly as they appear in FRED.) Value (thousands of persons) Series ID LNU05026642 UNEMPLOY Title Not in Labor Force, Searched for Work and Available Unemployed Employment Level Part-Time for Economic Reasons, All Industries LNS12032194 Employed CE160V %. (Enter your response Using data recorded above, the official unemployment rate for October, 2017 was rounded to one decimal place.) It has been argued that the official unemployment rate understates the degree of joblessness because of the narrow definiton used to define those who are unemployed A broader measure, which includes as unemployed those who work part-time for economic reasons and those who were available for work but not actively searching, is also computed by the BLS. Using date from above, this broader rate of unemployment for October, 2017 was %, (Enter your response rounded to one decimal place) The gap between the official rate and the broader rate changes over the course of the business cycle. More specifically during recessions the gap is likely to (1) 2: http://research.stlouisfed.org/fred2/categories/12 3: More Info The RED" link will take you directly to the Current Population Survey (Household Survey) page on FRED. To answer the questions, you will need to click on the individual series, and then you will need to click on the "view data" link. For any numerical questions, be sure to enter the value exactly as it appears in FRED. There are a lot of data points, so be sure to select the value that corresponds to the date asked for in the exercise Navigation hint:For Google Chrome users, the browser window that will open when you click the "FRED" link will not have a back button. To go back, right mouse click anywhere on the page and choose "Back" from the popup menu. Alternatively, when navigating to another page, right mouse click the link and choose "Open link in new window" to open the information in a new window. (1) O narrow O widen
Explanation / Answer
Not in Labor Force: Searched for Work and Available(LNU05026642) 1535
Employment Level: Part-Time for Economic Reasons, All Industries (LNS12032194) 4753
Unemployed (UNEMPLOY) 6520
Employed (CE16OV) 153861
official unemployment rate = 6520/(153861+6520+4753+1535)*100 . = 3.9%
Broader unemployement rate = . 6520+4753+1535/(153861+6520+4753+1535)*100 = 7.6%
Gap will widen
