Suppose that no one enters or leaves the labor force and that the fraction of the unemployed getting a job (in a given period)is 0.10 and the fraction of the employed becoming unemployed is 0.02.What is the approximate unemployment rate when the flows into and out of unemployment are in balance?
A) 9%
B) 10%
C) 17%
D) 22%

Question

Quizplus · Accepted Answer

The Answer of Suppose that no one enters or leaves the labor force and that the fraction of the unemployed getting a job (in a given period)is 0.10 and the fraction of the employed becoming unemployed is 0.02.What is the approximate unemployment rate when the flows into and out of unemployment are in balance?
A) 9%
B) 10%
C) 17%
D) 22%

Suppose That No One Enters or Leaves the Labor Force