ssume an economy at a steady-state unemployment rate with a separation rate of 0.20 per year, a job finding rate of 0.60 per year, and the labor force comprised of 3000 individuals. a) Compute the long run unemployment rate. b) How many individuals find a job each year? c) How many individuals get unemployed each year? How many individuals get employed each year?

ssume an economy at a steady-state unemployment rate with a separation rate of 0.20 per year, a job finding rate of 0.60 per year, and the labor force comprised of 3000 individuals. a) Compute the long run unemployment rate. b) How many individuals find a job each year? c) How many individuals get unemployed each year? How many individuals get employed each year?

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter12: Business Cycles And Unemployment

Section: Chapter Questions

Problem 8SQP

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Question

Assume an economy at a steady-state unemployment rate with a separation rate of 0.20 per year, a job finding rate of 0.60 per year, and the labor force comprised of 3000 individuals.

a) Compute the long run unemployment rate.

b) How many individuals find a job each year?

c) How many individuals get unemployed each year? How many individuals get employed each year?

Definition Definition State in which an individual is without work, despite actively seeking employment opportunities. The unemployment rate refers to the percentage of the workforce that is currently unemployed. Unemployment is one of the key indicators of the conditions prevailing in an economy. It is therefore considered a barometer that points out the condition of an economy.

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