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Suppose That No One Enters or Leaves the Labor Force

question 14

Multiple Choice

Suppose that no one enters or leaves the labor force and that the fraction of the unemployed getting a job (in a given period) is 0.10 and the fraction of the employment becoming unemployed is 0.02. What is the approximate unemployment rate when the flows into and out of unemployed are in balance?

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Definitions:

Correctly Matches

Properly aligns or associates two or more elements based on a set of rules or criteria.

Natural Selection

A mechanism of evolution posited by Charles Darwin, where organisms better adapted to their environment tend to survive and produce more offspring.

Predation

A biological interaction where one organism, the predator, hunts and consumes another organism, the prey, for food.

Proportionately

In a way that keeps a correct or appropriate relationship in size, amount, or degree between parts of a whole.

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