If the Steady-State Rate of Unemployment Equals 0

question 88

Multiple Choice

If the steady-state rate of unemployment equals 0.10 and the fraction of employed workers who lose their jobs each month (the rate of job separations) is 0.02, then the fraction of unemployed workers who find jobs each month (the rate of job findings) must be:

• A)0.02.
• B)0.08.
• C)0.10.
• D)0.18.

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Definitions:

Interest Receivable

An accounting term for interest income that has been earned but not yet received in cash.

Common Stock

Common stock represents ownership shares in a corporation, giving shareholders voting rights and a residual claim on the corporate earnings in the form of dividends.

Par

The face value of a security or bond, which is the amount paid back to the investor when the security or bond matures.

Gain Or Loss

The financial result from the difference between the selling price and the purchase cost of an asset.