D2) Suppose in an economy Emmaland, the Beveridge curve can be described as v =√B-u², where u is the unemployment rate, u is the vacancy rate, 3 is a parameter.Note that 0 < u < 1, 0 < v < 1, and 3 > 0. In Year 0, the vacancy rate andunemployment rate in Emmaland were both 5%. In Year 1, the vaccancy rateincreases to 6% and the number of employed workers is 962,583. What is the sizeof labor force in Year 1?t

Labor Force refers to the total number of workers that are either employed or unemployed but…

Suppose in an economy Emmaland, the Beveridge curve can be described as v = √B-u², where u is the unemployment rate, u is the vacancy rate, ß is a parameter. Note that 0 < u < 1, 0 0. In Year 0, the vacancy rate and unemployment rate in Emmaland were both 5%. In Year 1, the vaccancy rate increases to 6% and the number of employed workers is 962,583. What is the size of labor force in Year 1?t

Suppose in an economy Emmaland, the Beveridge curve can be described as v = √B-u², where u is the unemployment rate, u is the vacancy rate, ß is a parameter. Note that 0 < u < 1, 0 0. In Year 0, the vacancy rate and unemployment rate in Emmaland were both 5%. In Year 1, the vaccancy rate increases to 6% and the number of employed workers is 962,583. What is the size of labor force in Year 1?t

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter27: The Philips Curve And Expetactions Theory

Section: Chapter Questions

Problem 8SQP

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9. Suppose in an economy Emmaland, the Beveridge curve can be described as v = p β − u 2 , where u is the unemployment rate, v is the vacancy rate, β is a parameter. Note that 0 < u < 1, 0 < v < 1, and β > 0. In Year 0, the vacancy rate and unemployment rate in Emmaland were both 5%. In Year 1, the vaccancy rate increases to 6% and the number of employed workers is 962,583. What is the size of labor force in Year 1?
Suppose the unemployment rate is 7% under one of these two outcomes and 5% under the other. Based on the previous graph, you would expect to be associated with the higher unemployment rate (7%).
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