Answered: If the rate of job separation is 1% and…

If the rate of job separation is 1% and the rate of job finding is 10%, the natural rate of unemployment is, approximately equal to Question options: 9% 1% 11% 90% none of the above

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter6: Business Cycles And Unemployment

Section: Chapter Questions

Problem 10SQ

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Question

If the rate of job separation is 1% and the rate of job finding is 10%, the natural rate of unemployment is, approximately equal to

Question options:

11%

90%

none of the above

Definition Definition State in which an individual is without work, despite actively seeking employment opportunities. The unemployment rate refers to the percentage of the workforce that is currently unemployed. Unemployment is one of the key indicators of the conditions prevailing in an economy. It is therefore considered a barometer that points out the condition of an economy.

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