In the "bathtub model" of unemployment, the job-finding rate equals the job-separation rate.

Question

Quizplus · Accepted Answer

In the "bathtub model" of unemployment, the equilibrium is achieved when the job-finding rate equals the job-separation rate, but the statement as phrased suggests they are inherently the same, which is incorrect. The rates are distinct factors that balance each other out in equilibrium, not equal in definition or value.

In the "Bathtub Model" of Unemployment, the Job-Finding Rate Equals