Labor market and unemployment.

a.

Recall the unemployment flow equation from the bathtub model of unemployment: AUth = $E - fut You have the following labor market data from the JOLTS database for date t: separation rate s 30% job finding rate f 75% # of employed workers 100 In addition, you know that AU1 =0. Using all this information, you know that workers are unemployed. (Hint: The correct answer is an integer.)The labor market data for April 2021 was released earlier in the day and the President of the United States wants your best estimate for next month's unemployment rate. Number of Monthly Monthly Finding Size of Labor Date Unemployed Separation Rate Rate Force Workers 11/30/2020 15% 25% 160 million 12 million Based on the bathtub model with a fixed labor force of 160 million, you predict that the May unemployment rate is percent. (HINT: Start with the flow equation for unemployment and convert it to a flow equation for the unemployment rate. Notice that you need to calculate the May unemployment rate, not the change in the unemployment rate between April and May. Enter your answer as a percentage number without the % sign. Round to the nearest tenth of a percent.)