1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Tamiku [17]
3 years ago
6

Consider an economy with 500 people in the labor force. At the beginning of every month, 5 people lose their jobs and remain une

mployed for exactly one month; one month later, they find new jobs and become employed. In addition, on January 1 of each year, 20 people lose their jobs and remain unemployed for six months before finding new jobs. Finally, on July 1 of each year, 20 people lose their jobs and remain unemployed for six months before finding new jobs.
a. What is the unemployment rate in this economy in a typical month?
b. What fraction of unemployment spells lasts for one month? What fraction lasts for six months?
c. What is the average duration of a completed spell of unemployment?
d. On any particular date, what fraction of the unemployed are suffering a long spell (six months) of unemployment?

Business
2 answers:
Otrada [13]3 years ago
5 0

Answer:

a. What is the unemployment rate in this economy in a typical month?

  • 5%

b. What fraction of unemployment spells lasts for one month? What fraction lasts for six months?

  • 1% lasts 1 month, 4% lasts 6 months

c. What is the average duration of a completed spell of unemployment?

  • 5 months

d. On any particular date, what fraction of the unemployed are suffering a long spell (six months) of unemployment?

  • 80%

Explanation:

given:

total labor force = 500 people

every month 5 people are frictionally unemployed

at January 1, 20 people lose their jobs and find new jobs by the end of June

at July 1, 20 people lose their jobs and find new jobs by the end of December

total unemployed on a typical month = 5 + 20 = 25 ⇒ 5%

unemployed for 1 month = 5 ⇒ 1%

unemployed for 6 months = 20 ⇒ 4%

average duration of unemployment = [(20 x 6) + (5 x 1)] / 25 = 5 months

on any day, 20/25 = 80% of the unemployed are suffering a long spell unemployment

yawa3891 [41]3 years ago
3 0

Answer:

a) 5%

b) 0.60 0.40

c) 3months

d) 80%

Explanation:

The solution is attached in the picture below

You might be interested in
What function of money is highlighted when sally pays her cell phone bill with cash?
sineoko [7]
It is the medium of exchange. It serves as the mediator instrument used to encourage the deal, buy or exchange of products between parties. For an instrument to work as a medium of trade, it must speak to a standard of significant worth acknowledged by all gatherings. In present-day economies, the medium of trade is money.
7 0
3 years ago
Sourcing goods and services from different locations around the globe in an attempt to take advantage of national differences in
andreyandreev [35.5K]

Answer:

b. Production

Explanation:

Global Value Chains have been successful over the years due to most components being produced in the country where<em> it is cheaper to do so</em> and then the final output<em> is integrated in other country</em>.

Thus globalization of production has enabled <em>firms</em> to take advantage of national differences in the cost and quality of factors of production.

5 0
3 years ago
The narrowest definition of the money supply (M1) includes:
fenix001 [56]

Answer:

c. cash, checking account balances, and travelers' checks.

Explanation:

Money Supply is the concept that means the amount of the liquid financial products and total currency in the market or economy. It is regulated the macro-economically by the monetary policy. So, there are types of measures of money supply or stock:

-M0: narrowly, it means the hard currency in circulation

-MB: it equals M0+ the hard currency which are not technically in circulation and in bank reserves.

-M1: it is the most common one and equals M0 plus checking accounts plus travelers’ checks and other checkable deposits.

-M2: covers M1 and saving accounts and CDs.

-M3: it surrounds the larger deposits.

-MZM: finally, this indicates the money market deposits.

That’s why we could notice that M1 narrowly means the cash, checking account and travelers’ checks.

5 0
3 years ago
Elle, an adolescent, believes that government should pay for citizens' health care. from this premise, she reasons about the par
harina [27]

This is an example of<u>  "deductive reasoning".</u>


Deductive reasoning is a coherent procedure in which a conclusion depends on the concordance of numerous premises that are commonly thought to be valid.  

Deductive reasoning is sometimes alluded to as top-down logic. Its partner, inductive thinking, is some of the time alluded to as base up rationale. Where deductive thinking continues from general premises to an explicit end, inductive thinking continues from explicit premises to a general end.

8 0
3 years ago
If private investors put a lot of money into the U.S. economy, the gross domestic product will increase. What else will likely o
Phoenix [80]
An increase in jobs and inflation.
8 0
3 years ago
Other questions:
  • A small economy increased its capital per hour worked (k/l ) from $40,000 to $50,000. As a result, real GDP per worker (Y/L) gre
    6·1 answer
  • The income statement of Sarasota Company is shown below. SARASOTA COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020
    15·1 answer
  • One reason a long-tenured top-level manager may hesitate to conclude the firm's structure is a problem is that doing so: a. sugg
    14·1 answer
  • Describe at least four ways you can take money out of a checking account
    13·2 answers
  • Ace Corp., a company based in New York, uses the delivery services of Red Source Inc. to ship machinery to a customer located in
    8·1 answer
  • 5 Senaraikan empat contoh aktiviti perniagaan yang boleh diceburi dengan modal yang kecil
    11·2 answers
  • When economists study aggregate supply and aggregate demand, what are they studying? the supply and demand of a good produced by
    11·2 answers
  • What advertising technique does Activia yogurt, Burger king, subway, etc. use to attract the crowd in buying there products?
    13·2 answers
  • Which of the following statements is incorrect? Employment insurance compensation encourages longer job searches, which may lead
    14·1 answer
  • To maximize income from consumers, distributors time their tentpole theatrical releases according to
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!