1.

In March of 2020, the U.S. labor force was 163 million workers, of which 156 million were employed. According to the most recent JOLTS data, the separation rate (s ¯) was 3.6 percent.

Calculate the unemployment rate for March 2020. Assuming that this rate is the natural rate, calculate the job finding rate f ¯.

For full credit, describe the steps you have taken to answer the question as well as the correct result!

2.

In April, 22 million workers filed initial unemployment benefit claims (that's the number of additional claims). Assuming L ¯ = 163 million and a constant job finding rate, just like in the previous question, calculate the separation rate and the unemployment rate for April 2020. (Hint: The initial level of employment for April was the same as at the end of March.)

For full credit, describe the steps you have taken to answer the question as well as the correct result!

3.

If the separation rate stayed the same for the foreseeable future, what would the steady-state unemployment rate be?

For full credit, describe the steps you have taken to answer the question as well as the correct result!