If the fraction of employed workers who lose their jobs each month (the rate of job separation) is 0.01 and the fraction of the unemployed who find a job each month is 0.09 (the rate of job findings) , then the natural rate of unemployment is:
A) 1 percent.
B) 9 percent.
C) 10 percent.
D) about 11 percent.
Correct Answer:
Verified
Q4: Frictional unemployment is inevitable because:
A) different sectors
Q5: Economists call the changes in the composition
Q6: If the steady-state rate of unemployment equals
Q7: Any policy aimed at lowering the natural
Q8: All of the following are reasons for
Q12: One reason for unemployment is that:
A)it takes
Q17: When the unemployment rate is at a
Q18: The macroeconomic problem that affects individuals most
Q20: Employment insurance increases the amount of frictional
Q22: The unemployment resulting when real wages are
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