If the fraction of employed workers who lose their jobs each month (the rate of job separations) 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:
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Q11: In the model of the steady-state unemployment
Q12: The natural rate of unemployment is:
A) the
Q13: A policy that increases the job-finding rate
Q14: If s is the rate of job
Q15: The natural rate of unemployment in the
Q17: One reason for unemployment is that:
A) it
Q18: The macroeconomic problem that affects individuals most
Q19: Sectoral shifts:
A) lead to wage rigidity.
B) explain
Q20: Which of the following is an example
Q21: When the real wage is above the
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