An economy currently has a separation rate s = 5% and a job-finding rate f = 74%. Suppose the government adopts new rules to protect jobs. The result is a decrease in the separation rate s from 5% to 6% in the bathtub model of employment. If the government wants to maintain the same natural rate of unemployment, it must adopt additional labor market policies with a job-finding rate of %. Round your answer to the nearest tenth of a percent.
An economy currently has a separation rate s = 5% and a job-finding rate f = 74%. Suppose the government adopts new rules to protect jobs. The result is a decrease in the separation rate s from 5% to 6% in the bathtub model of employment. If the government wants to maintain the same natural rate of unemployment, it must adopt additional labor market policies with a job-finding rate of %. Round your answer to the nearest tenth of a percent.
Macroeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter8: Economic Fluctuations, Unemployment, And Inflation
Section: Chapter Questions
Problem 5CQ
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