According to the Bathtub model: Et + U = L AUt+1=sEt- fUt What is the effect...

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According to the Bathtub model: Et + U₁ = L AUt+1=sEt- fUt What is the effect on steady state unemployment if the separation rate rises (s ↑)? O The separation rate is always zero in steady state. O If s goes up, then the steady state unemployment rate will not change. O If s goes up, then the steady state unemployment rate rises. If s goes up, then the steady state unemployment rate falls. According to the Bathtub model: Et + U₁ = L AUt+1=sEt- fUt What is the effect on steady state unemployment if the separation rate rises (s ↑)? O The separation rate is always zero in steady state. O If s goes up, then the steady state unemployment rate will not change. O If s goes up, then the steady state unemployment rate rises. If s goes up, then the steady state unemployment rate falls.

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