This paper circulates around the core theme of Suppose that the labor force is fixed at 10 million people, of whom 1 million are unemployed. Assume that the job-separation rate is 2% per month and the job-finding rate is 40% per month. a. Trace out (numerically and graphically) the time path of emplo together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
Suppose that the labor force is fixed at 10 million people, of whom 1
million are unemployed. Assume that the job-separation rate is 2% per
month and the job-finding rate is 40% per month.
a. Trace out (numerically and graphically) the time path of employment and unemployment during the first two years.
b. What is the natural unemployment rate?
