Assignment:
Post a short one paragraph response to each of the following two questions with supporting reference(s).
Discussion Topic 1
Applying the formal definition of the unemployment rate, is an increase in the unemployment rate necessarily a bad thing for a nation? Conversely, is a decrease in the unemployment rate necessarily a good thing for a nation? Explain your positions.
Discussion Topic 2
Given that the government statisticians who calculate the inflation rate have been updating the basic basket of goods once every 10 years. Should they now decide to update it every five years? How will this change: (1) affect the amount of substitution bias? and (2) amount of the quality/new goods bias?