Suppose That a Country Has Two Types of Workers-Young Workers

question 26

Essay

Suppose that a country has two types of workers-young workers and older workers.Young workers make up 10 percent of the labor force and normally have a group unemployment rate of 15 percent.Older workers comprise the rest of the labor force and normally have a group unemployment rate of 5 percent.What is the country's natural rate of unemployment? If twenty years earlier,the country experienced a baby boom such that the labor force composition of young workers now jumps to 20 percent,what is the country's new natural rate of unemployment? Comment on your calculations.

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Definitions:

Brazilian Real

The official currency of Brazil, represented by the symbol R$ and subdivided into 100 centavos.

U.S. Currency

The currency issued by the United States, primarily consisting of banknotes and coins denominated in dollars and cents.

U.S. Dollar

The U.S. Dollar is the official currency of the United States, serving as a standard medium of exchange and a global reserve currency.

Danish Krone

The official currency of Denmark, often represented by the symbol DKK.