During the course of ayear, the labor force consists of the same 882 people. Ofthese, 17 lack skills that employers desire and hence remain unemployed throughout the year. At the sametime, every month during theyear, 40 different people becomeunemployed, and 40 other different people who were unemployed find jobs. There is no cyclical unemployment.

a. Calculate the frictional unemployment rate. 4.54%. (Enter your response as a percentage rounded to two decimalplaces).

b. Calculate the unemployment rate. 6.46%. (Enter your response as a percentage rounded to two decimalplaces).

c. Suppose that a system of unemployment compensation is established. Eachmonth, 40 new people(not including the 17 lacking requiredskills) continue to becomeunemployed, but each monthly group of newly unemployed now takes two months to find a job. Calculate the frictional unemployment rate after this change. 9.07%. (Enter your response as a percentage rounded to two decimalplaces).

d. After the change discussed in part (c), calculate the unemployment rate. (Enter your response as a percentage rounded to two decimalplaces).

To be determined.