Suppose a hypothetical economy is in steady-state given by the formula: U/L %3D 1+ f/s If the natural rate of unemployment is 10%, how many times larger is the rate of job finding, f, relative to the rate of job separation, s? (Hint: Use X to represent the number of times f is larger than s, so Xs = f. In the formula for the steady-state rate of unemployment, replace f with Xs and solve for X.) times

Suppose a hypothetical economy is in steady-state given by the formula: U/L %3D 1+ f/s If the natural rate of unemployment is 10%, how many times larger is the rate of job finding, f, relative to the rate of job separation, s? (Hint: Use X to represent the number of times f is larger than s, so Xs = f. In the formula for the steady-state rate of unemployment, replace f with Xs and solve for X.) times

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter16: Business Cycles And Unemployment

Section: Chapter Questions

Problem 6SQP

See similar textbooks

Similar questions

Typically, even at similar stages of the economic cycle, the unemployment rate in several West European countries is higher than in the United States. To what extent can the above observation possibly be linked or not with the fact that in Europe: (1) the unionization rate is higher (2) laws often make it more difficult to lay off people, (3) collective bargaining is more or less centralized, (4) unemployment insurance programs are relatively more generous.
You have the following relationship between unemployment and GDP: u = 8.6 - 0.75(Y - 1000). If Y is 999$, how much is the natural rate of unemployment? What your answer as a percentage, round at one (1) decimal, but do not write the percentage sign. %3D
Suppose that in a population of 200 million persons, 150 million are in the labor force and 120 million are employed. Then the unemployment rate for this economy is: A) 20 percent B) 40 percent C) 60 percent D) 80 percent
Assume the following for the town of Boone: The town has a total population of 50,000 people, of which 4,000 are under 16 years of age or are institutionalized; 5,000 are full-time students who are not employed and are not seeking work; and 40,000 are employed. The rest of the people are out of work but have been actively seeking work within the past four weeks. What is the unemployment rate in Boone? Instructions: Round your answer to 1 decimal place. percent
Suppose that in an economy with production equal to the natural level, Y=A*N, Yn-5000, L=6250 and A=1. We know that the natural rate of unemployment of this economy is: 1. 0.15 2. 0.25 3. 0.2 4. 0.1.
According to the most recent survey conducted by Statistics Bureau of Metropolis, currently there are 14 million people between the age of 15 and 64 living in the city. If the labour force participation rate in Metropolis is 65 percent and 8.5 million people currently have jobs, what is the rate of unemployment? Options: A) 3.7% B) 7.8% C) 6.6% D) 11.4% E) 12.9% Show all working out and full explanations.
Assume you have the following information about the unemployment rate among differentgroups in the labor force: adult males 5%, adult females 4.5%, and teenagers 12%. Teenagers account for15% of the work force and, women account for 40% of the adult labor force. What is the actual nationwideunemployment rate?
Consider a hypothetical economy in which the labor force consists of 300 people. Of those, 270 people are employed full-time and 30 people are unemployed. The economy follows the same conventions as the U.S. Bureau of Labor Statistics (BLS) in computing its employment figures. Therefore, Initially the unemployment rate is calculated as follows: Unemployment Rate = Manber of played ople Number of Popie Labor Fore 30 x 100 300 <= 10% W x 100 Suppose a reduction in foreign demand for this economy's products causes an economic recession following table offers two possible scenarios resulting from the recession. Calculate the unemployment rate associated with each scenario in the following table. Assume that each scenario describes the only labor market changes in this economy. Scenario A: Firms reduce work hours by 10%. The number of involuntary part-time workers rises as firms respond to the reduction in the demand for their products by reducing the hours of each employed person from 40…
An economy is described by the following equations C = 62 + 0.6 (Y - T) T = 100 IP = 200 G = 80 NX = -30 Y* = 600 find the level of total unemployment at Y (actual output). Assume the Natural rate of Unemployment = 5%
2) In the same economy, the nominal wages are determined by the price level (), unemployment rate () and unemployment benefits () according to the function:. If the unemployment benefits amount to 0.5, write the wage relation (WS) and represent it graphically.
< Consider an economy that initially has a labor force of 1,000 workers. Of these workers, 950.0 are employed and each works 40 hours per week. Ten units of output are produced by each hour of labor. The total number of hours worked per week is 38000 (Round your answer to the nearest whole number). The total output per week is 380000 (Round your answer to the nearest whole number). The unemployment rate is 5% (Round your answer to one decimal place). The economy enters a recession. Employment falls by 4%, and the number of hours per week worked by each employed worker fails by 2%. Employment is now 912 (round to the nearest whole number), and the total number of hours worked per week is now 35,750.4 (round your answer to one decimal place). In addition, 2.0% of the labor force becomes discouraged at the prospect of finding a job and leaves the labor force. The size of the labor force is now (Round your answer to the nearest whole number) The number of workers unemployed is ☐ (Round…
The labor force participation rate is the percentage of the working-age population in the labor force. Suppose an economy is given by: == Population 283 million Working-age population = 186 million Labor force = 129 million The number of people employed = 120 million The number of people unemployed = 9 million The labor force participation rate for this economy is %. (Enter your response rounded to one decimal place.)