12. The towns of Sawyer and Thatcher each have a labor force of 1,200 people. In Sawyer,...

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12. The towns of Sawyer and Thatcher each have a labor force of 1,200 people. In Sawyer, 100 people were unemployed for the entire year, while the rest of the labor force worked continuously. In Thatcher, every member of the labor force was unemployed for 1 month and employed for 11 months. (LO5) a. What is the average unemployment rate over the year in each of the towns? b. What is the average duration of unemployment spells in each of the towns? c. In which town do you think the costs of unemployment are higher?

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Principles Of Macroeconomics

ISBN: 9781264250356

8th Edition

Authors: Robert Frank, Ben Bernanke, Kate Antonovics, Ori Heffetz

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