Do not round any of your answers. Unemployment Problem Suppose the rate of job finding (a) is 0.357, while the rate of job separation (B) is 0.018. If there are 100,000 people in the (fixed) labor force and 5,000 of them are unemployed, the unemployment rate is currently equal to percent. Given the values for a and ß, the number of people who find a job this month will equal and the number of people who lose or leave a job this month will equal Because there are (more/fewer) people finding a job than losing or leaving one, the rate of unemployment is expected to change until it reaches the steady-state equilibrium value of

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter18: Introduction To Macroeconomics: Unemployment, Inflation, And Economic Fluctuations
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Do not round any of your answers. Steady-State
Unemployment Problem
Suppose the rate of job finding (a) is 0.357, while the rate of job separation
(B) is 0.018.
If there are 100,000 people in the (fixed) labor force and 5,000 of them are
unemployed, the unemployment rate is currently equal to
percent.
Given the values for a and B, the number of people who find a job this month
will equal
and the number of people who lose or leave a
job this month will equal
Because there are
(more/fewer)
people finding a job than losing or leaving
one, the rate of unemployment is expected to change until it reaches the
steady-state equilibrium value of
Transcribed Image Text:Do not round any of your answers. Steady-State Unemployment Problem Suppose the rate of job finding (a) is 0.357, while the rate of job separation (B) is 0.018. If there are 100,000 people in the (fixed) labor force and 5,000 of them are unemployed, the unemployment rate is currently equal to percent. Given the values for a and B, the number of people who find a job this month will equal and the number of people who lose or leave a job this month will equal Because there are (more/fewer) people finding a job than losing or leaving one, the rate of unemployment is expected to change until it reaches the steady-state equilibrium value of
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