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If the Rate of Separation Is 0

Question 97

Multiple Choice

If the rate of separation is 0.02 and the rate of job finding is 0.08 but the current unemployment rate is 0.10, then the current unemployment rate is ______ the equilibrium rate, and in the next period it will move ______ the equilibrium rate.


A) above; toward
B) above; away from
C) below; toward
D) below; away from

Correct Answer:

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