Question 6. Unemployment (a) A country has labor force of 40. Throughout a year, nobody found a job , so the rate of job finding is zero. But the quantity of unemployed increased from 4 to 5. Find the rate of separation. (b) Another economy has a labor force of 800. Currently, 70 workers are unemployed. The rate of separation is 0.01 and the rate of job finding is 0.19. Find how many workers will be unemployed next year. Show work. (c) Impose the steady state condition on your dynamic system to find the steady-state number of unemployed. Show work. Graph whether the economy is in a boom or recession and how the unemployment will revert to the natural level. Label axes and values that you deem relevant. Use the steady-state unemployment rate formula. Answer Key (a) 2.78% (b) 64 (c) 0.05