4. (a) Explain clearly the job separation rates and the job finding rate f in the bathtub model of unemployment. Write out the formula for each rate. (b) An economy has a working-age population of 15,000, a labor force of 10,000, and 9,000 people actually working. Calculate the unemployment rate. Show thy work!

4. (a) Explain clearly the job separation rates and the job finding rate f in the bathtub model of unemployment. Write out the formula for each rate. (b) An economy has a working-age population of 15,000, a labor force of 10,000, and 9,000 people actually working. Calculate the unemployment rate. Show thy work!

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter7: Unemployment And Inflation

Section: Chapter Questions

Problem 1.1P

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