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:

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21 March, 19:49

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:

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Savannah Richardson · Answer 1

The fraction of the employed workers who lose their jobs each month or the rate of the job separation must be 0.07

Steady-state rate of unemployment multiply to the fraction of unemployed workers who find jobs each month.

0.125 * 0.56 = 0.07

The answer in this question is 0.07