Suppose the labour force of an economy is equal to 1,000 and the unemployment on December...

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Suppose the labour force of an economy is equal to 1,000 and the unemployment on December 2010 is 0. Then, suppose that in January 2011 and every month that follows, 66 workers become unemployed for 1 month, 46 become unemployed for 2 months, 36 become unemployed for 3 months and 21 become unemployed for 15 months. a. When will the economy reach its steady state? Month: Correct response: March May Year: 2011 Correct response: 2012 Y b. At the steady state, what is the unemployment rate? Express your answer in percentage rounded to the nearest first decimal. 16.9 Correct response: 58.1 c. At the steady state, what is the incidence? Express your answer in percentage rounded to the nearest first decimal. 0.3 x 95.15 Correct response: 16.9 d. At the steady state, what is the average duration (in months)? Express your answer rounded to the nearest first decimal. Correct response: 3.4 x e. At the steady state, what is the proportion of unemployed workers in each duration group (1 month, 2 month, 3 months and 15 months)? Express your answers in percentage rounded to the nearest first decimal. 1 month: 39.1 Correct response: 11.4 2 month: 27.2 Correct response: 15.8 3 month: 21.3 Correct response: 18.6 15 month: 12.4 Correct response: 54.2 Suppose the labour force of an economy is equal to 1,000 and the unemployment on December 2010 is 0. Then, suppose that in January 2011 and every month that follows, 66 workers become unemployed for 1 month, 46 become unemployed for 2 months, 36 become unemployed for 3 months and 21 become unemployed for 15 months. a. When will the economy reach its steady state? Month: Correct response: March May Year: 2011 Correct response: 2012 Y b. At the steady state, what is the unemployment rate? Express your answer in percentage rounded to the nearest first decimal. 16.9 Correct response: 58.1 c. At the steady state, what is the incidence? Express your answer in percentage rounded to the nearest first decimal. 0.3 x 95.15 Correct response: 16.9 d. At the steady state, what is the average duration (in months)? Express your answer rounded to the nearest first decimal. Correct response: 3.4 x e. At the steady state, what is the proportion of unemployed workers in each duration group (1 month, 2 month, 3 months and 15 months)? Express your answers in percentage rounded to the nearest first decimal. 1 month: 39.1 Correct response: 11.4 2 month: 27.2 Correct response: 15.8 3 month: 21.3 Correct response: 18.6 15 month: 12.4 Correct response: 54.2

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The detailed answer for the above question is provided below a The economy will reach its steady state in March 2012 The steady state is reached when ... View the full answer