To keep things simple, the textbook model focuses on a situation where employment and the labour force are constant, and assumes that the employed and the unemployed have the same probability of finding a job in a given month, and this probability is denoted f. We would like to find the value of f.

a)variables s, Z, N, U, L and u. What arethese, meaning and applications

b) how many jobs operating each month

c) how many people are seeking a job

d)

what is the probability f that a job seeker find a job in a given month

(e) How does the value of f that you just found depend on s, u, and Z? Give an intuitive interpretation for each variable