Suppose that unemployed workers find jobs at the rate of 15% per period and the job...

Suppose that unemployed workers find jobs at the rate of 15% per period and the job separation rate for employed workers is 5% per period. Assume the size of the labor force is fi xed at 1000. At period t=0, number of unemployed U0 = 200 and employed E0 = 800. Calculate the following (Round up to ONE decimal place if needed. Enter only numbers) (a) What is the unemployment rate at t=1 in percentage? (b) What is the natural (steady state) unemployment rate in percentage? (c) Starting from the steady state where the unemployment rate is at its natural rate, suppose that suddenly the job finding rate falls to 10% and separation rises to 8%, what will be the unemployment rate of one period after in percentage?

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Rahul Sunny answered 2 years ago

Suppose that unemployed workers find jobs at the rate of 15% per period and the job...

Suppose that unemployed workers find jobs at the rate of 15% per period and the job separation rate for employed workers is 5% per period. Assume the size of the labor force is fi xed at 1000. At period t=0, number of unemployed U0 = 200 and employed E0 = 800. Calculate the following (Round up to ONE decimal place if needed. Enter only numbers) (a) What is the unemployment rate at t=1 in percentage? (b) What is the natural...

Suppose that in any given period an unemployed person will find a job with probability .6...

Suppose that in any given period an unemployed person will find a job with probability .6 and will therefore remain unemployed with a probability of .4. Additionally, persons who find themselves employed in any given period may lose their job with a probability of .3 and will have a .7 probability of remaining employed. Set up the Markov transition matrix for this problem There are 1000 people in the economy. At period 0, half of the population is unemployed, what...

In a small job shop department there are four jobs to be assigned to three workers....

In a small job shop department there are four jobs to be assigned to three workers. The table below indicates the weekly costs incurred by assigning each worker to each job. The objective is to find the optimal assignment that will minimize the total cost. Worker/Job │ I II III IV A │ 12 10 11 15 B │ 13 16 14 12 C │ 11 12 13 10 Formulate this problem as a linear programming model...

Suppose all workers and jobs in a hypothetical economy are homogenous.

Suppose all workers and jobs in a hypothetical economy are homogenous. Explain why no wage differentials would exist if this economy were perfectly competitive and information and mobility were costless. Explain why wage differentials would arise if, on the other hand, information and mobility were imperfect and costly.

How is the unemployment rate defined? a. The rate at which workers are losing their jobs...

How is the unemployment rate defined? a. The rate at which workers are losing their jobs at a given time b. The percentage of the population that is unemployed at a given time c. The percentage of the labor force that is unemployed at a given time d. The fraction of the working-age population who do not have a job, expressed as a percentage __________ 2. Sources of growth in total factor productivity include all of the following except ____________....

Question 6 Every month 27% of the unemployed find a job and 3% of the employed...

Question 6 Every month 27% of the unemployed find a job and 3% of the employed are seperated from their jobs. If the current unemployment rate is 10%, do you expect the unemployment rate to a. decrease b. stay the same c. cannot be determined d. increase Question 7 When the real wage is above the level that equates labor supply to labor demand, then the quantity of labor supplied a. depends on the nominal wage b. is smaller than...

True/False. "If discouraged workers are counted as unemployed, then the unemployment rate will rise." Explain your...

True/False. "If discouraged workers are counted as unemployed, then the unemployment rate will rise." Explain your choice.

Terminus Company completed two jobs during January, Job Z-15 and Job W-20. Completing Job Z-15 required...

Terminus Company completed two jobs during January, Job Z-15 and Job W-20. Completing Job Z-15 required an additional $2,720 in direct labour and completing Job W-20 required $1,296 in direct materials and $8,000 in direct labour. The details of the two jobs in process on January 1 are as follows: Job Z-15 Job W-20 Direct Materials $ 2,038 $ 1,280 Direct Labour 768 3,360 On January 1 the Materials Inventory balance was $11,040, and $1,392 worth of materials was purchased...

Jobs are sent to a printer at an average rate of 6 jobs per hour. (a)...

Jobs are sent to a printer at an average rate of 6 jobs per hour. (a) What is the expected time between jobs? [Note: Give the exact answer either in hours or in minutes.] (b) What is the probability that the next job is sent within 4 minutes? [Note: Round the answer to four decimal places.]

Jobs are sent to a server at a rate of 2 jobs per minute. We will...

Jobs are sent to a server at a rate of 2 jobs per minute. We will model job arrivals using a (homogenous) Poisson process. For each question, clearly specify the parameter value(s) of the distribution as well as its name. (a) What is the probability of receiving more than 3 jobs in a period of one minute? (b) What is the probability of receiving more than 30 jobs in a period of 10 minutes? (No need to simplify.) (c) What...

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Suppose that unemployed workers find jobs at the rate of 15% per period and the job...

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Suppose that unemployed workers find jobs at the rate of 15% per period and the job...

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