If the rate of job finding equals 7%,and the rate of job separation equals 1%,then the natural rate of unemployment is

Name: If the rate of job finding equals 7%,and the rate of job separation equals 1%,then the natural rate of unemployment is
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Question

Quizplus · Accepted Answer

The natural rate of unemployment is calculated using the formula: natural rate = job separation rate / (job separation rate + job finding rate). Substituting the given values: 1% / (1% + 7%) = 1/8 = 0.125 or 12.5%.

If the Rate of Job Finding Equals 7%,and the Rate