AP_Krugman_Textbook

What you will learn

in this Module:

118 section 3 Measurement of Economic Performance

How Important is Oligopoly?

measured

• How the unemployment rate
  is calculated


• The significance of the
  unemployment rate for the
  economy


• The relationship between the
  unemployment rate and
  economic growth

Module 12

The Meaning and

Calculation of

Unemployment

The Unemployment Rate

One of the most important issues in the 2008 presidential election was the growing

unemployment rate. Figure 12.1 shows the U.S. unemployment rate from 1948 to the

early part of 2010; as you can see, the labor market hit a difficult patch starting in

figure 12.1

The U.S. Unemployment

Rate, 1948–2010

The unemployment rate has fluctuated

widely over time. It always rises during re-

cessions, which are shown by the shaded

bars. It usually, but not always, falls during

periods of economic expansion.

Source:Bureau of Labor Statistics; National Bureau of

Economic Research.

12%

10

8

6

4

2

Unemployment

rate

Year

1948 1960 1970 1980 1990 2000 2010