4. (a) Explain clearly the job separation rates and the job finding rate f in thebathtub model of unemployment. Write out the formula for each rate.o In the bathtub model, the separation rate captures the number ofemployed people who lose their job. While Job finding rate captures tnumber of unemployed people who find a new job.Bathtub ModelAU (t+1)= SE (t)-fU (1)Separation rate

The Separation Rate calculates the proportion of workers who quit their jobs during the reporting…

Answered: (a) Explain clearly the job separation…

(a) Explain clearly the job separation rates and the job finding rate f in the bathtub model of unemployment. Write out the formula for each rate.

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter7: Unemployment And Inflation

Section: Chapter Questions

Problem 1.2P

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Question

4. (a) Explain clearly the job separation rates and the job finding rate f in the
bathtub model of unemployment. Write out the formula for each rate.
o In the bathtub model, the separation rate captures the number of
employed people who lose their job. While Job finding rate captures t
number of unemployed people who find a new job.
Bathtub Model
AU (t+1)= SE (t)-fU (1)
Separation rate

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