The slippage between ________ occurs because the unemployment rate is calculated from data on the number of people employed.

Question

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The unemployment rate is calculated by dividing the number of unemployed individuals by the total labor force, which includes those who are employed and those who are unemployed and actively seeking work. Therefore, the slippage between output (a measure of the economy's performance) and the unemployment rate occurs because the unemployment rate is calculated based on data about the number of people employed, which is affected by changes in output. If output falls, the number of people employed may also fall, leading to an increase in the unemployment rate. Therefore, there is a slippage between the output and the unemployment rate.

The Slippage Between ________ Occurs Because the Unemployment Rate Is