Consider a simple model where workers can be either employed or unemployed. If the job separationrate is 2% per month and the job finding rate is 53% per month, which of the following is FALSE? 1.There are more workers losing their jobs than there are unemployed workers finding a job 2.None of the other options 3.The steady state unemployment rate is 3.6% 4.The steady state employment rate is 96.4%
Consider a simple model where workers can be either employed or unemployed. If the job separationrate is 2% per month and the job finding rate is 53% per month, which of the following is FALSE? 1.There are more workers losing their jobs than there are unemployed workers finding a job 2.None of the other options 3.The steady state unemployment rate is 3.6% 4.The steady state employment rate is 96.4%
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Consider a simple model where workers can be either employed or unemployed. If the job separationrate is 2% per month and the job finding rate is 53% per month, which of the following is FALSE?
1.There are more workers losing their jobs than there are unemployed workers finding a job
2.None of the other options
3.The steady state
4.The steady state employment rate is 96.4%
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