Suppose the separation rate is 3% and the finding rate is 24%.
a. What is the natural rate of unemployment?
b. If the separation rate remains at 3% and the finding rate doubles,what is the new natural rate of unemployment?
c. If the separation rate is cut in half and the finding rate remains at 24%,what is the new natural rate of unemployment?
d. Which has more impact: a doubling of the finding rate or a halving of the separation rate?
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