Assume that unemployment at date t+1, Ut+1, is defined as: Ut+1 = Ut Mt + St, (1) where Ut is unemployment at date t, Mt is the number of jobless who match with a job, and St is the number of employed people who leave their job and join unemployment at date t. Assume that each period a fraction m of the unemployed is matched: mUt = Mt Assume that every period, a proportion of the employed leaves their jobs: St = sEt = s(POP Ut), where POP is the total workforce (and everyone in this population either works or is unemployed). Assume that s+m 1. Calculate the steady-state

Assume that unemployment at date t+1, Ut+1, is defined as: Ut+1 = Ut Mt + St, (1) where Ut is unemployment at date t, Mt is the number of jobless who match with a job, and St is the number of employed people who leave their job and join unemployment at date t. Assume that each period a fraction m of the unemployed is matched: mUt = Mt Assume that every period, a proportion of the employed leaves their jobs: St = sEt = s(POP Ut), where POP is the total workforce (and everyone in this population either works or is unemployed). Assume that s+m 1. Calculate the steady-state

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter6: Business Cycles And Unemployment

Section: Chapter Questions

Problem 10SQ

See similar textbooks

Similar questions

Suppose the workingminus−age population of a fictional economy falls into the following categories: 90 are retired or homemakers; 60 have fullminus−time employment; 20 have partminus−time employment; 20 do not have employment, but are actively looking for employment; and 10 would like employment but do not have employment and are not actively looking for employment. The official unemployment rate as calculated by the U.S. Bureau of Labor would equal A. 30/80×100. B. 20/80×100. C. 20/100×100. D. 20/60×100.
Frictional unemployment seem to depend on the age distribution of the population. Describe why this is so.
The bathtub model of unemployment revisited - Lt is the labor force, Ut is the number of unemployed workers and Et the number of employed workers in period t. The separation rate and the job finding rate in period t are correspondingly st and ft. Assume that Lt+1 = (1 + n) Lt and a share dt of the new workers, Lt+1 Lt, are employed immediately as they enter the labor force. Write and explain the equation describing the level of unemployment in period t + 1, Ut+1; as a function of current unemployment, Ut, current employment, Et, and increase in the labor force, Lt+1 L
If, over two periods (quarters), the unemployment rate had reduced from 6.5 to 5.5 per cent and the measured underemployment rate had increased from 7.5 per cent to 8.2 per cent, the change to the labour underutilisation rate would have been ..... Select one: a. an increase of 0.3 per cent. b. a decrease of 0.3 per cent. c. an increase of 0.7 per cent. d. a decrease of 0.7 per cent.
Suppose the civilian noninstitutionalized working-age population is 35.935.9 million in in a hypothetical economy. Of these, 4.64.6 million are working part-time and 15.7115.71 million are working full-time. Assume the Bureau of Labor Statistics (BLS) definitions are used for calculating unemployment data. Among those not working, the most recent job-search activity for 3.203.20 million happened less than two weeks ago, while 1.721.72 million most recently looked for work between two and four weeks ago. An additional 0.860.86 million most recently looked for work five weeks ago, and the remaining 9.819.81 million who do not have jobs have not looked for work in the past six weeks. Round your answers to two decimal places. What is the size of the total labor force? millionmillion How many people are unemployed? millionmillion What is the labor force participation rate? %% What is the unemployment rate? %
Define the following causes of unemployment: frictional, structural, and cyclical. Which of these causes is more paramount during a severe recession?
a) What is structural and frictional unemployment? b) Give a real world example of frictional and structural unemployment in Trinidad and Tobago between.
Country A has a total population of 100 million, of which 80 percent are adults (and hence are capable of working). Assume that 25 percent of the adult population are not looking for a job.Among the remaining adult population who are participating in the labor force, 50 percent are employed, 8% are frictionally unemployed, and 2% are structurally unemployed. Compute thenumber of cyclically unemployed workers
Suppose the civilian noninstitutionalized working-age population is 35.9 million in in a hypothetical economy. Of these, 4.4million are working part-time and 13.19 million are working full-time. Assume the Bureau of Labor Statistics (BLS) definitions are used for calculating unemployment data. Among those not working, the most recent job-search activity for 3.40 million happened less than two weeks ago, while 1.72million most recently looked for work between two and four weeks ago. An additional 0.86 million most recently looked for work five weeks ago, and the remaining 12.33 million who do not have jobs have not looked for work in the past six weeks. Round your answers to two decimal places. What is the size of the total labor force? million How many people are unemployed? million What is the labor force participation rate? % What is the unemployment rate?
According to the most recent survey conducted by Statistics Bureau of Metropolis, currently there are 14 million people between the age of 15 and 64 living in the city. If the labour force participation rate in Metropolis is 65 percent and 8.5 million people currently have jobs, what is the rate of unemployment? Options: A) 3.7% B) 7.8% C) 6.6% D) 11.4% E) 12.9% Show all working out and full explanations.
Consider Thailand's economy, which is characterized by a total population of 21,800,000. 467,000 individuals are unemployed 7,250,000 individuals are characterized as not-in-the-labour-force Their unemployment rate currently sits at 3.4% individuals belong to the labour force. Round your answer to the nearest integer, if necessary. Do not include the comma in your answer. Their participation rate is integer. Do not include the %-sign in your answer. %. Express your answer in percentage terms, rounded to the nearest
Fill in the missing values in the table of data collected in a labour force survey in October 2015 for a particular region. (Round your responses for unemployment and labour force to the nearest whole number. Round your response for employment-population ratio to one decimal place.) Working Age Population Employment Unemployment Unemployment rate Labour force Labour force participation rate Employment-population ratio Value 19,359,300 8.5% 66.5% %