Suppose the Official Rate of Unemployment Reported by Statistics Canada

question 85

Multiple Choice

Suppose the official rate of unemployment reported by Statistics Canada is 7.2%.One reason this is likely to be an understatement of the amount of "true" unemployment is that

• A)the official rate is a measure of gross flows into and out of unemployment rather than net flows.
• B)discouraged workers who have given up searching for a job,but would take one if offered,are not included.
• C)the official rate is a measure of net flows into and out of unemployment rather than gross flows.
• D)Statistics Canada does not have a good measure of the numbers of people entering the labour force.
• E)seasonal workers are not included at all in the official data.

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Definitions:

Linear Trend Line

A straight line that best represents the data on a scatter plot, showing the direction and rate of a linear relationship between two variables.

Regression Analysis

A set of statistical processes for estimating the relationships among variables, typically used to determine how the typical value of a dependent variable changes when any one of the independent variables is varied.

Forecast Equation

An equation used in statistical analysis to predict future values based on past data and trends, often involving variables and coefficients.

Percentage of Trend

A statistical measure that represents the direction and movement of data points over a specified period, often used to identify patterns in time series data.