Unemployment and the Labor Market End of Chapter Problem S The steady-state rate of unemployment is...
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Unemployment and the Labor Market End of Chapter Problem S The steady-state rate of unemployment is Suppose that the unemployment rate does not begin at this level. Use this s+f relationship to show that unemployment will evolve over time and reach this steady state. = a. The change in the number of people who become unemployed (AU+1) is the difference between the number of employed people losing their current jobs and the number of unemployed people finding new jobs. The number of employed people losing their jobs can be expessed as b. The number of unemployed people finding new jobs can be expressed as c. The change in the number of unemployed is therefore AUt+1 = Unemployment and the Labor Market End of Chapter Problem S The steady-state rate of unemployment is Suppose that the unemployment rate does not begin at this level. Use this s+f relationship to show that unemployment will evolve over time and reach this steady state. = a. The change in the number of people who become unemployed (AU+1) is the difference between the number of employed people losing their current jobs and the number of unemployed people finding new jobs. The number of employed people losing their jobs can be expessed as b. The number of unemployed people finding new jobs can be expressed as c. The change in the number of unemployed is therefore AUt+1 =
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To show that the unemployment rate will evolve over time and reach the steadystate level we can use the relationship between the steadystate unemploym... View the full answer
Related Book For
Macroeconomics
ISBN: 978-1464168505
5th Canadian Edition
Authors: N. Gregory Mankiw, William M. Scarth
Posted Date:
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