If the steady-state unemployment rate for an economy is 5%, and each period 2% of employed workers lose their jobs, what percent of unemployed workers find employment each period?

A. 8%

B. 18%

C. 28%

D. 38%

E. 48%

Question

Business

Kody

23 November, 03:54

If the steady-state unemployment rate for an economy is 5%, and each period 2% of employed workers lose their jobs, what percent of unemployed workers find employment each period?

A. 8%

B. 18%

C. 28%

D. 38%

E. 48%

+1

Answers (1)

Know the Answer?

Gavin Moody · Answer 1

D. 38%

Explanation:

We know that,

Steady - state unemployment rate = (Employed workers lose their jobs) : (Employed workers lose their jobs + unemployed workers find employment)

0.05 = (0.02) : (0.02 + unemployed workers find employment)

0.05 * 0.02 + 0.05 * unemployed workers find employment = 0.02

0.001 + 0.05 * unemployed workers find employment = 0.02

0.05 * unemployed workers find employment = 0.02 - 0.001

0.05 * unemployed workers find employment = 0.019

So, unemployed workers find employment would be 0.38 or 38%

If the steady-state unemployment rate for an economy is 5%, and each period 2% of employed workers lose their jobs, what percent of unemployed workers find employment each period?A. 8%B. 18%C. 28%D. 38%E. 48%

If the steady-state unemployment rate for an economy is 5%, and each period 2% of employed workers lose their jobs, what percent of unemployed workers find employment each period?

A. 8%

B. 18%

C. 28%

D. 38%

E. 48%