Explain the model of labor flows (bathtub model). Define the job separation and the job finding rates. How are these related to job creation and job destruction? How is the natural rate of unemployment determined in the model? How does

Principles of Macroeconomics (MindTap Course List)
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ISBN:9781285165912
Author:N. Gregory Mankiw
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Chapter15: Unemployment
Section15.2: Job Search
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Explain the model of labor flows (bathtub model). Define the job separation and the job finding rates. How are these related to job creation and job destruction? How is the
natural rate of unemployment determined in the model? How does a rise in the job finding rate affect unemployment? An increase in the job separation rate?

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