Consider an economy with a labor force of 100 million people. Each period, 60% of the unemployed population finds a job while 20% of the employed population loses their job. What is the steady-state unemployment rate in the economy? a. 25% b. 60% c. 40% d. 20% e. 33% 25% is the correct answer please explain why it is and how you solved to get it.

Consider an economy with a labor force of 100 million people. Each period, 60% of the unemployed population finds a job while 20% of the employed population loses their job. What is the steady-state unemployment rate in the economy? a. 25% b. 60% c. 40% d. 20% e. 33% 25% is the correct answer please explain why it is and how you solved to get it.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter21: Unemployment

Section: Chapter Questions

Problem 45P: A country with a population of eight million adults has five million employed, 500,000 unemployed,...

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