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Consider the Harris & Todaro model applied to the Monocentric Model that we studied in Module 6. The urban income is y=15.000 The land
Consider the Harris & Todaro model applied to the Monocentric Model that we studied in Module 6. The urban income is y=15.000 The land rent is $3,000, r=3,000 commuting cost is $100 per mile, t=100 The city offers 30,000 jobs, J=30,000 After solving the quadratic equation, you learn that, in equilibrium, the population is 109.808 a) In equilibrium, what is the chance of getting an urban job? b) What is the implied unemployment rate in the city?
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