Job separation rate: .04 Job finding rate: .10 Labor force: 100 million In the steady state:...

Question

Question

Job separation rate: .04 Job finding rate: .10 Labor force: 100 million In the steady state:...

Job separation rate: .04

Job finding rate: .10

Labor force: 100 million

In the steady state:

what is the unemployment rate?

How many individuals lose their job each month?

How many individuals find jobs each month?

business economics

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

In steady state, unemployment rate (U/L) = s/(s+f) = 0.04/(0.04 + 0.10) = 0.04/0.14 = 0.2857 = 28.57%

Labor force = 100 millions

No. Of unemployed = (100 * 0.2857) millions = 28.57 millions

No. Of employed = (labor force - no. Of unemployed) = 71.43 millions

Individuals lose their job each year = (71.43 * 0.04) millions = 2.8572 millions

Individuals find jobs each month = (28.57 * 0.10) millions = 2.857 millions

Add a comment

Answer 2

Similar Homework Help Questions

Question #4 a. Assume that the real wage in an economy is held above equilibrium. i....

Question #4 a. Assume that the real wage in an economy is held above equilibrium. i. Graphically illustrate how an increase in the supply of labor will change the number of unemployed workers. Be sure to label the axes and the quantities of labor hired before and after the increase in the labor suppl y. ii. Explain in words what happens to the number of unemployed as a result of this change. Page 5 b. i.If the nate of job...
1. Suppose 21 million people are unemployed today in an economy. If the rate of job...

1. Suppose 21 million people are unemployed today in an economy. If the rate of job separation is 0.02 per month and the rate of job finding is 0.08 per month, what is the natural rate of unemployment? If labor force remains unchanged over time and 64 million people are employed in the steady-state of the economy, how many people are unemployed in the steady-state?
3. In the model of the steady-state unemployment rate with a fixed labor force, describe the...

3. In the model of the steady-state unemployment rate with a fixed labor force, describe the meaning the rate of job finding, the rate of job separation, and the natural rate of unemployment.

1. In an economy, 2 percent of the employed lose their job every month (s =...

1. In an economy, 2 percent of the employed lose their job every month (s = 0.02) and 10 percent of the unemployed find a job every month (f = 0.10). a. What is the steady-state rate of unemployment? b. If the economy were at a steady-state unemployment rate and the labour force were 20 million, how many individuals would lose their jobs each month? Suppose the GDP growth rate is 6 percent and inflation is 2 percent. If the...
Fakeland has 2.3 million employed people and 0.2 million unemployed people. The size of the labour...

Fakeland has 2.3 million employed people and 0.2 million unemployed people. The size of the labour force is fixed. The job finding rate is 22% and the separation rate is 3%. (a) What is Fakeland’s current unemployment rate? (b) How many unemployed workers will find a job this period? (c) How many employed workers will lose their job this period? (d) Given your answers above, will the number of unemployed people increase or decrease over time? (e) Compute Fakeland’s steady...
Picture an economy with 100,000 workers in its labor force. The unemployment rate is simply the...

Picture an economy with 100,000 workers in its labor force. The unemployment rate is simply the number of unemployed workers divided by the number of workers in the labor force. At the beginning of January, the unemployment rate is 4.76%, so 4,760 people in the labor force are unemployed. Suppose that in January, 10% of the workers who were unemployed at the beginning of the month start new jobs. This means that ________ people leave the unemployment category in January....

Consider a simple model where workers can be either employed or unemployed. If the job separation...

Consider a simple model where workers can be either employed or unemployed. If the job separation rate is 2% per month and the job finding rate is 53% per month, which of the following is FALSE? a) There are more workers losing their jobs than there are unemployed workers finding a job b) None of the other options c) The steady state unemployment rate is 3.6% d)The steady state employment rate is 96.4%
Suppose the labor market has the following statistics: Unemployed=1million, Employed=4million, Adult population= 7million. (a) Suppose of...

Suppose the labor market has the following statistics: Unemployed=1million, Employed=4million, Adult population= 7million. (a) Suppose of the 1million unemployed, 80,000 of them find jobs every month; of the 4million employed,160,000 lose their jobs every month. (i) Calculate and interpret the steady state rate of unemployment (ii) Give an example of a policy that would reduce the rate of job separation. (iii) Suppose this policy reduces the number of people losing their jobs from 160,000 to 120,000. Calculate and explain how...
Consider an economy with 500 people in the labor force. At the beginning of every month,...

Consider an economy with 500 people in the labor force. At the beginning of every month, 10 people lose their jobs and remain unemployed for exactly one month; one month later, they find new jobs and become employed. In addition, on January 1 of each year, 20 people lose their jobs and remain unemployed for six months before finding new jobs. Finally, on July 1 of each year, 20 people lose their jobs and remain unemployed for six months before...

The size of the labor force is 400 million. Each month 36% of unemployed workers find...

The size of the labor force is 400 million. Each month 36% of unemployed workers find jobs and 4% of employed workers lose their jobs. How many unemployed people find jobs each month (in millions)

Job separation rate: .04 Job finding rate: .10 Labor force: 100 million In the steady state:...

Homework Answers

Add Answer to:
Job separation rate: .04 Job finding rate: .10 Labor force: 100 million In the steady state:...

Post as a guest

Earn Coins

Question #4 a. Assume that the real wage in an economy is held above equilibrium. i....

1. Suppose 21 million people are unemployed today in an economy. If the rate of job...

3. In the model of the steady-state unemployment rate with a fixed labor force, describe the...

1. In an economy, 2 percent of the employed lose their job every month (s =...

Fakeland has 2.3 million employed people and 0.2 million unemployed people. The size of the labour...

Picture an economy with 100,000 workers in its labor force. The unemployment rate is simply the...

Consider a simple model where workers can be either employed or unemployed. If the job separation...

Suppose the labor market has the following statistics: Unemployed=1million, Employed=4million, Adult population= 7million. (a) Suppose of...

Consider an economy with 500 people in the labor force. At the beginning of every month,...

The size of the labor force is 400 million. Each month 36% of unemployed workers find...

Job separation rate: .04 Job finding rate: .10 Labor force: 100 million In the steady state:...

Homework Answers

Add Answer to: Job separation rate: .04 Job finding rate: .10 Labor force: 100 million In the steady state:...

Post as a guest

Earn Coins

Add Answer to:
Job separation rate: .04 Job finding rate: .10 Labor force: 100 million In the steady state:...