If the Rate of Separation Is 0

question 17

Multiple Choice

If the rate of separation is 0.02 and the rate of job finding is 0.08 but the current unemployment rate is 0.10, then the current unemployment rate is ______ the equilibrium rate, and in the next period it will move ______ the equilibrium rate.

• A) above; toward
• B) above; away from
• C) below; toward
• D) below; away from

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Definitions:

Net Income

Profit after all expenses, taxes, and deductions are subtracted from total revenue.

Debt Investments

Financial assets representing money lent to others or invested in debt securities.

Acquisition

The process of obtaining control of another company by purchasing its stock, assets, or both.

Interest Earned

Income received from investment assets before taxes such as deposits, savings, and loans investments.