Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Consider two different economies: the U.S. and France. In the U.S., 1% of employed people lose their jobs each month and 15% of unemployed people
Consider two different economies: the U.S. and France. In the U.S., 1% of employed people lose their jobs each month and 15% of unemployed people find jobs each month. In France, 1.5% of employed people lose their jobs each month and only 12% of unemployed people find jobs each month. a. Calculate the natural rate of unemployment in the U.S. and France. b. Provide and explain two possible explanations for the differences in the two unemployment rates. That is, looking at the actual economies of U.S. and France, provide two reasons why unemployment is higher in France than it is in the U.S. Calculate the unemployment rate in the US below and put a box around your answer. Show all work. Calculate the unemployment rate in France below and put a box around your answer. Show all work. Provide and explain two possible explanations for the differences in the two unemployment rates (based on what you have learned in the chapter). Explanation #1: Explanation H2: Consider two different economies: the U.S. and France. In the U.S., 1% of employed people lose their jobs each month and 15% of unemployed people find jobs each month. In France, 1.5% of employed people lose their jobs each month and only 12% of unemployed people find jobs each month. a. Calculate the natural rate of unemployment in the U.S. and France. b. Provide and explain two possible explanations for the differences in the two unemployment rates. That is, looking at the actual economies of U.S. and France, provide two reasons why unemployment is higher in France than it is in the U.S. Calculate the unemployment rate in the US below and put a box around your answer. Show all work. Calculate the unemployment rate in France below and put a box around your answer. Show all work. Provide and explain two possible explanations for the differences in the two unemployment rates (based on what you have learned in the chapter). Explanation #1: Explanation H2
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started