Suppose that 25% of the unemployed find a job and 2% of the employed lose their jobs each month. What are the steady-state rate of unemployment and the average spell of unemployment (hint: the average spell of unemployment is the reciprocal of the proportion of unemployed people leaving unemployment)? O a. 8%; 5 months b. 8%; 4 months c. 7.41%; 5 months O d. 7.41%; 4 months

Suppose that 25% of the unemployed find a job and 2% of the employed lose their jobs each month. What are the steady-state rate of unemployment and the average spell of unemployment (hint: the average spell of unemployment is the reciprocal of the proportion of unemployed people leaving unemployment)? O a. 8%; 5 months b. 8%; 4 months c. 7.41%; 5 months O d. 7.41%; 4 months

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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