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Suppose that the labor force is 1,000. 18 people lose their jobs on the 1st of each month and remain unemployed for exactly 1 month
Suppose that the labor force is 1,000. 18 people lose their jobs on the 1st of each month and remain unemployed for exactly 1 month before finding new jobs. On January 1, May 1, and September 1 of each year 52 people lose their jobs for a period of 4 months before finding new jobs. What is the unemployment rate in this economy? Give your answer as a decimal with 3 decimal places.
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