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P- adult population, L-labor force, E- employed, U-unemployed, L=E U, e=E/P - employment rate, m=L/P - participation rate, u=U/L - unemployment rate, U E=L, u
P- adult population, L-labor force, E- employed, U-unemployed, L=E U, e=E/P - employment rate, m=L/P - participation rate, u=U/L - unemployment rate, U E=L, u e=1, a - accession rate, s-separation rate, ut 1= ut set-aut, ut 1 = s(1-ut)-aut, steady-state unemployment rate = s/(s a), =1-(s a) - speed-of-adjustment parameter; smaller corresponds to a more dynamic labor market. Assume 0 < s a < 1. If capital K=const, then with the Cobb-Douglas production function the demand for labor is L=K(p(1-)A/w)1/, where p is price of one unit of output, w is wage. Given: P=200, E=110, U=10, Find unemployment rate
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