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Business, 12.07.2021 18:40 anthonylopez1
Suppose that unemployed workers find jobs at the rate of 15% per period and the job separation rate for employed workers is 5% per period. Assume the size of the labor force is fixed at 1000. At period t=0, number of unemployed Uo = 200 and employed Eo = 800. Calculate the following (Round up to ONE decimal place it needed. Enter only numbers) (a) What is the unemployment rate at t=1 in percentage? (b) What is the natural (steady state) unemployment rate in percentage? (c) Starting from the steady state where the unemployment rate is at its natural rate, suppose that suddenly the job finding rate falls to 10% and separation rises to 8%, what will be the unemployment rate of one period after in percentage?
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Suppose that unemployed workers find jobs at the rate of 15% per period and the job separation rate...
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