Problem
Suppose that the government altered the computation of the unemployment rate by including people in the military as part of the labor force.
a. How would this affect the actual unemployment rate?
b. How would such a change affect estimates of the natural rate of unemployment?
c. If this computational change were made, would it in any way affect the logic of the short-run and long-run Phillips curve analysis and its implications for policymaking? Why might the government wish to make such a change?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.