6 Chrome File Edit View History Bookmarks Proles Tab Window Help a \\ I Q . ' benetsadministratio X v administrativeassista 11h Week13(5/3;5/5)Cr X m. MyBlackboard Conte X MindTap-CengageLi X 9: CourseHero C' , ng.cengage.co Jaida V v. CENGAGE MINDTAP Q Search this course I. My Home News Analysis: Is the Phillips Curve a Myth? 0 X Courses Phelps was suspicious of the tradeoff suggested by the Phillips curve. He thought that sensible, forward-looking people should not change their behavior just because the prices on all the price tags in the economy increased at 4% per year instead of at 2% per year. Catalog and Study Tools Phelps started his analysis by asking what determines the unemployment rate. One of the key points he recognized was that unemployment is the Rental Options inevitable consequence of an economy in which some rms go out of business each month and some workers quit theirjobs each month. Once a worker is out of a job, the individual will take some time searching for the next one. College Success Tips Career SUCCESS Tips Consider the following scenario. Picture an economy with 100,000 workers in its labor force. The unemployment rate is simply the number of unemployed workers divided by the number of workers in the labor force. At the beginning of January, the unemployment rate is 4.76%, so 4,760 people in the labor force are unemployed. Staying Focused I Suppose that in January, 20% of the workers who were unemployed at the beginning of the month start new jobs. This means that 9 Help V people leave the unemployment category in January. Q Give Feedback Suppose that in January the job separation rate equals 3%. That is, 3% of the people who were employed at the beginning of the month are laid off or quit. This means v people are added to the unemployment category that month. (Hint: Round your answer to the nearest whole number.) Assume the size of the labor force does not change from January to February. Considering that the job separation rate is 3% during January, and 20% of unemployed workers nd new jobs, the unemployment rate at the beginning of Febmary will be approximately v .(Hlnt: Round your answer to the nearest hundredth.) Generalizing from your calculations for January, if in February, the job separation rate is 3%, and 20% of unemployed workers get jobs, the