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How is unemployment or inflation measured?

In: Economics, Inflation, Unemployment [Edit categories]

Answer:

In the UK unemployment is measured by the Labour Force Survey which takes a sample population an records the number of people receiving Job Seekers Allowance.

Therefore it doesn't include unemployment and not seeking employment

Inflation in the Eurozone is currently measured using RPI (Retail Price Index).

A basket of goods is constructed, which takes the most commonly bought items by an average household and weights them (eg, Television is commonly bought, but not often so will have a low weighting. Chicken will have a higher weighting than a television because it is bought more commonly).

The cost of this bundle of goods is calculated in a given year (1984) and then based at 100. Every quarter the basket is constructed with updated prices and compared to the base period.

First answer by Jordanshl. Last edit by Jordanshl. Contributor trust: 10 [recommend contributor ]. Question popularity: 1 [recommend question].

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