4 Question 2 10 points Save Antw P- adult population, L-labor force, E-employed, U-unemployed, L=E+U, e=E/P- employment

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Question 2 10 points Save Antw P- adult population, L-labor force, E-employed, U-unemployed, L=E+U, e=E/P- employment rate, m-L/P-participation rate, u=U/L - unemployment rate, U+E=L, u+e-1, a - accession rate, s-separation rate, ut+1 ut+set-aut, Aut+1 = s(1-ut)-aur, steady-state unemployment rate =s/(s+a), A=1-(s+a) - speed-of-adjustment parameter; smaller corresponds to a more dynamic labor market. Assume 0 Question 2 10 points Save Antw P- adult population, L-labor force, E-employed, U-unemployed, L=E+U, e=E/P- employment rate, m-L/P-participation rate, u=U/L - unemployment rate, U+E=L, u+e-1, a - accession rate, s-separation rate, ut+1 ut+set-aut, Aut+1 = s(1-ut)-aur, steady-state unemployment rate =s/(s+a), A=1-(s+a) - speed-of-adjustment parameter; smaller corresponds to a more dynamic labor market. Assume 0