If the Steady-State Rate of Unemployment Equals 0

question 2

Multiple Choice

If the steady-state rate of unemployment equals 0.125 and the fraction of unemployed workers who find jobs each month (the rate of job findings) is 0.56, then the fraction of employed workers who lose their jobs each month (the rate of job separations) must be:

• A)0.08.
• B)0.125.
• C)0.22.
• D)0.435.

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