Suppose that the government altered the computation of the unemployment rate by including people in the military
Question:
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?
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