Macroeconomics and National Accounts

📋 Course Outline

1. Measuring Unemployment and Its Limits
2. National Accounts Bases and Revisions
3. European System of Accounts
4. Physiocrats and the Economic Circuit
5. The Simplified Economic Circuit
6. From National Accounts to Macroeconomics

📖 1. Measuring Unemployment and Its Limits

🔑 Key Concepts & Definitions

• Unemployment : Identified when a working-age individual did not work during the reference week and is available for work.
• Unemployment halo : The unemployment halo consists of intermediate situations between unemployment, employment, and inactivity, including reduced hours, training, withdrawal from the labour market, voluntary reduced working time, and undeclared work.

📝 Essential Points

📌 Under the BIT definition, working for only 1 hour during the reference week is sufficient for an individual to be classified as employed, which tends to minimize measured unemployment.

📐 Formula — The BIT unemployment rate equals the number of BIT unemployed divided by the labour force, which is the sum of employed people and BIT unemployed people: $u = \frac{U}{E+U}$.

💡 Memory Hook