The formula representing the relationship between the unemployment rate, the separation rate and average duration of unemployment is given by:
Assume that the job separation rate is 1 percent and the average duration of unemployment is 12 weeks. Calculate the unemployment rate. Now assume that the average duration has decreased to 10 weeks. Calculate the new unemployment rate. Explain how this relationship can be used to consider how employment insurance affects the unemployment rate.

Question

The formula representing the relationship between the unemployment rate, the separation rate and average duration of unemployment is given by:
  Assume that the job separation rate is 1 percent and the average duration of unemployment is 12 weeks. Calculate the unemployment rate. Now assume that the average duration has decreased to 10 weeks. Calculate the new unemployment rate. Explain how this relationship can be used to consider how employment insurance affects the unemployment rate.

Quizplus · Accepted Answer

The Answer of The formula representing the relationship between the unemployment rate, the separation rate and average duration of unemployment is given by:
  Assume that the job separation rate is 1 percent and the average duration of unemployment is 12 weeks. Calculate the unemployment rate. Now assume that the average duration has decreased to 10 weeks. Calculate the new unemployment rate. Explain how this relationship can be used to consider how employment insurance affects the unemployment rate.

The Formula Representing the Relationship Between the Unemployment Rate, the Separation