If the U.S. government wanted to, it could just say that everyone who is unemployed is employed
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a. Would this change in the definition of GDP increase GDP? Would it improve well-being?
b. If the government permanently defined unemployed people as “employed in job search,” then over the course of a few decades as the economy fluctuated, would GDP look more volatile or less volatile than it does under the regular definition? (Hint: You might find it easier to answer if you consider GDP from the “factor income” perspective.)
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