Suppose that the rate of job separation is 5% and the job-finding rate is 40%.The natural rate of unemployment is%. (Enter your response as a percent rounded to one decimal place.)If the job-finding rate doubles, the new natural rate of unemployment is %. (Enter your response as a percent rounded to one decimal place.)Return to the original scenario. If the job-separation rate is cut in half, the new natural rate of unemployment is%. (Enter your response as a percent rounded to one decimal place.)Which had more impact, a doubling of the job-finding rate or a halving of the job-separation rate?With respect to government policy aimed at reducing the economy's natural rate of unemployment, an implication of the preceding is that efforts shouldA. always emphasize increasing the job-finding rate.B. either target the variable (job-finding rate or job-separation rate) that is easier (more cost effective) to alter, or target some combination of the two.C. minimize the job-separation rate and maximize the job-finding rate such that the natural rate of unemployment approaches zero percent.D. always emphasize reducing the job-separation rate.

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Answered: Suppose that the rate of job separation…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

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Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly labeled diagram must have all axes and curves clearly labeled and must show directional changes. If the question prompts you to “Calculate,” you must show how you arrived at your final answer. The table below shows unemployment and labor force statistics for an economy. Actual rate of unemployment 3% Natural rate of unemployment 4% Population of the country 125 million Number of people employed 97 million Number of people unemployed 3 million Number of people employed part time 5 million Number of discouraged workers 2 million (c) Given the state of the economy described in the table, is actual real output less than, greater than, or equal to potential real output? Explain. (d) Calculate what the cyclical unemployment rate would be if the actual rate of unemployment increased to 5 percent. Show your work.
Through the basic equation of the labor market (L = E + U), prove that in a steady state the open unemployment rate is inversely proportional to the ratio of the number of people who get a new job (f) to the person who lost their job(s)!
In August of 2020, the United States unemployment rate was 8.4%; in September, it was 7.8%. Which of the following is true? There is a 7.7% decrease in the United States unemployment rate from August to September, 2020. There is a 0.077 percentage point decrease in the United States unemployment rate from August to September, 2020. There was a 0.071 percentage point decrease in the United States unemployment rate from August to September, 2020. There was a 0.6% decrease in the United States unemployment rate from August to September, 2020. There was a 7.1% decrease in the United States unemployment rate from August to September, 2020.
In which of the following cases will we observe unemployment? the quantity of labor demanded is greater than the quantity of labor supplied at the going wage rate. the wage is below the level that balances supply and demand for labor. there is a shortage of workers. the quantity of labor demanded is less than the quantity of labor supplied at the going wage rate.
From the Hysteresis theory, a long period of high unemployment, can increase the natural rate of unemployment. Which of the 3 types of unemployment that are part of the natural rate of unemployment you think is affected the most by long periods of high unemployment? What are some solutions you would propose to solve the problems caused by the Hysteresis theory?
Consider a simple economy with search unemployment. The matching function is given by M = eQ^(1/2)A^(1/2) There were initially Q = 1000 unemployed workers looking for a job. Let b = 0.5, z = 1, k = 0.1, e = 3/5 and a = 0.5, where k is the cost of creating a vacancy. 1.Calculate the market tightness j. Show your calculation in details.2.What is the unemployment rate?3.What is the vacancy rate?4.How many vacancies are posted in the economy?

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