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krek1111 [17]
3 years ago
15

Suppose the number of people employed (E) is currently 100 and the number unemployed (U) is 10 and the labor force is fixed at 1

10. The monthly separation rate (s) is 0.01 and the finding rate (f) is 0.18.
What is the current rate of unemployment? B What is the natural rate of unemployment?
Business
1 answer:
artcher [175]3 years ago
4 0

Answer:

9.09% and 5.263%

Explanation:

The computation is shown below:

a. The current rate of unemployment is

= Number of Unemployed people ÷ labor force

= 10 ÷ 110

= 9.09%

b. The natural rate of unemployment is

= Separation rate ÷ Separation rate + finding rate

= 0.01 ÷ 0.01 + 0.18

= 0.01 ÷ 0.19

= 5.263%

These both should be expressed in a percentage forms

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