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Suppose in an economy Emmaland, the Beveridge curve can be described as v = V/B - 12, where u is the unemployment rate, v is
Suppose in an economy Emmaland, the Beveridge curve can be described as v = V/B - 12, where u is the unemployment rate, v is the vacancy rate, B is a parameter. Note that 0 > 0. In Year 0, the vacancy rate and unemployment rate in Emmaland were both 5%. In Year 1, the vaccancy rate increases to 6% and the number of employed workers is 962,583. What is the size of labor force in Year 1? (10 marks)
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