In a particular economy, the labour force (the sum of employed and unemployed workers) is fixed at
Question:
a. The January unemployment rate is 8%. For the rates of job loss and job finding given, what will the unemployment rate be in February? in March?
b. In April an adverse productivity shock raises the job loss rate to 3% of those employed. The job loss rate returns to 1% in May, while the job finding rate remains unchanged at 19% throughout. Find the unemployment rate for April, May, June, and July.
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Related Book For
Macroeconomics
ISBN: 978-0321675606
6th Canadian Edition
Authors: Andrew B. Abel, Ben S. Bernanke, Dean Croushore, Ronald D. Kneebone
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