Suppose that there is a fixed number of workers.
Each worker is at a certain instance either employed or unemployed.
The average duration of a period of unemployment is Du=10 months, and the average duration of a period of employment is De = 40 months.
Use the model of labor market flows between these two states to answer the following questions.
1) What is (in rate per month) the rate of job finding (f)?
2) What is the rate of job separation (s)?
3) What is the equilibrium unemployment rate (u)?
Suppose that there is a fixed number of workers.
Each worker is at a certain instance either employed or unemployed.
The average duration of a period of unemployment is Du=10 months, and the average duration of a period of employment is De = 40 months.
Use the model of labor market flows between these two states to answer the following questions.
1) What is (in rate per month) the rate of job finding (f)?
2) What is the rate of job separation (s)?
3) What is the equilibrium unemployment rate (u)?
For unlimited access to Homework Help, a Homework+ subscription is required.
Related textbook solutions
Related questions
QUESTION 1
Rosina Gonzales quit her job in Pennsylvania and moved to California to be close to her family. She is currently looking for work, so she would be considered
| frictionally unemployed. | ||
| cyclically unemployed. | ||
| a discouraged worker. | ||
| seasonally unemployed. |
1 points
QUESTION 2
Discouraged workers
| are counted as unemployed workers when the unemployment rate is calculated. | ||
| would decrease the unemployment rate if they were added to the number of unemployed workers. | ||
| are counted as one-half of a worker in the unemployment statistics. | ||
| would increase unemployment rate if they were added to the number of unemployed workers. |
1 points
QUESTION 3
In measuring the unemployment rate, part-time workers are ________ and discouraged workers are ________.
| included as employed; included as unemployed | ||
| excluded; excluded | ||
| excluded; included as unemployed | ||
| included as employed; excluded |
1 points
QUESTION 4
Mary has decided that the she does not like Iowa and has decided to quit her job as a medical technician and move to Arizona. Mary's unemployment as she searches for a new job is best classified as
| frictional. | ||
| cyclical. | ||
| structural. | ||
| seasonal. |
1 points
QUESTION 5
When a golf caddy in Minnesota (where golf courses close in the winter) is unemployed in December, it is most likely the case that the golf caddy is
| cyclically unemployed during long droughts. | ||
| frictionally unemployed during spring and summer. | ||
| structurally unemployed during spring and summer. | ||
| seasonally unemployed. |
1 points
QUESTION 6
After graduating from college, Yunis, age 22, started working for his parent's real estate business as an unpaid assistant. He works 25 hours a week helping manage rental units . In the Current Population Survey, Yunis is considered
| part of the labor force and employed. | ||
| part of the labor force and unemployed. | ||
| a discouraged worker. | ||
| not part of the labor force. |
1 points
QUESTION 7
The working-age population includes
| youngsters between the ages of 14 and 16 if they are working at least part time. | ||
| only employed people over the age of 16. | ||
| those in jails and hospitals. | ||
| employed and unemployed people over the age of 16. |
1 points
QUESTION 8
Involuntary part-time workers are workers who
| work less than 35 hours but would like to work full time. | ||
| work more than 35 hours but would like to work less than 35 hours. | ||
| work less than 35 hours by choice. | ||
| work have lost their jobs within the last four weeks and are seeking another job. |
1 points
QUESTION 9
Frictional unemployment is the result of
| the normal process of jobs being created and destroyed. | ||
| an economic recession. | ||
| people not getting along (having friction) with their employers. | ||
| the economic decline of major industries |
1 points
QUESTION 10
Bill just graduated with his degree in economics. Through Career Services he submitted his resume to several companies and he will visit them during the next two weeks. Bill is considered
| not in the labor force. | ||
| cyclically unemployed. | ||
| frictionally unemployed. | ||
| structurally unemployed. |
1 points
QUESTION 11
Harry works at the video rental store for 20 hours per week. He's asked his boss to allow him to work 40 hours per week, but has been told that business is too slow. Harry is considered
| an involuntary part-time worker. | ||
| a marginally attached worker. | ||
| a discouraged worker. | ||
| not in the labor force. |
1 points
QUESTION 12
Discouraged workers who are over 16 years old are
i.not counted as unemployed.
ii.part of the working-age population.
iii.part of the labor force.
| i and ii | ||
| ii and iii | ||
| ii only | ||
| i only |
1 points
QUESTION 13
Higher unemployment benefits create
| higher seasonal unemployment as workers switch jobs. | ||
| a lower number of job leavers. | ||
| incentives for longer job searches and higher frictional unemployment. | ||
| incentives for shorter job searches and higher structural unemployment. |
1 points
QUESTION 14
Seasonal unemployment includes people who become unemployed from
| changes in the business cycle. | ||
| technological changes. | ||
| the seasonal weather patterns. | ||
| normal changes in the labor force. |
1 points
QUESTION 15
Cyclical unemployment is
| higher when the economy is expanding. | ||
| always greater than the total of structural and frictional unemployment. | ||
| the total of structural and frictional unemployment. | ||
| created by a recession. |
1 points
QUESTION 16
Which of the following people would be classified as employed in the Current Population Survey?
| April, who just graduated from college and is looking for work | ||
| Jason, who was laid off from work less than 6 months ago but who has stopped looking for work | ||
| Rich, who is working 20 hours a week but wants a full-time job | ||
| Misty, who just quit her job to return full time to school |
1 points
QUESTION 17
People who are willing and able to work but are not looking for work because they have been discouraged by their previous futile efforts are called
| discouraged workers. | ||
| involuntarily unemployed. | ||
| part-time lookers. | ||
| unemployed workers. |
1 points
QUESTION 18
Discouraged workers are included in the calculation of the
i.unemployment rate.
ii.labor force participation rate.
iii.working-age population.
| i and ii | ||
| i only | ||
| iii only | ||
| ii only |
1 points
QUESTION 19
As firms search for the best employee to fill an opening and the unemployed search for the job that best fits their skills, the economy experiences
| changes in the business cycle. | ||
| cyclical unemployment. | ||
| frictional unemployment. | ||
| structural unemployment. |
1 points
QUESTION 20
Suppose the U.S. population is 275 million. If 210 million people are of working age, 135 million are employed, and 6 million are unemployed, what is the labor force participation rate?
| 64 percent | ||
| 67 percent | ||
| 76 percent | ||
| 49 percent |
1 points
QUESTION 21
During a recession the unemployment rate generally ________ and during an expansion the unemployment rate generally ________.
| rises; rises | ||
| rises; does not change | ||
| falls; rises | ||
| rises; falls |
1 points
QUESTION 22
In January of 2001, the population of the United States was 276.8 million, the working-age population was 210.2 million, the total number of people employed was 140, and the total number of people unemployed was 5.0 million. What was the labor force participation rate?
| 56 percent | ||
| 69 percent | ||
| 78 percent | ||
| 67 percent |
1 points
QUESTION 23
If Brian, age 24, had no job but was available for work and had looked for a job the week before the survey, Brian is classified in the Current Population Survey as
| unemployed. | ||
| employed. | ||
| a discouraged worker. | ||
| not in the labor force. |
1 points
QUESTION 24
Julie works part-time for economic reasons. She would be considered
| an involuntary part-time worker. | ||
| not in the labor force. | ||
| a job seeker. | ||
| a discouraged worker. |
1 points
QUESTION 25
Suppose the population is 300 million people, the labor force is 200 million people, the number of people employed is 185 million, and the working-age population is 170 million people. What is the unemployment rate?
| 5 percent | ||
| 7.5 percent | ||
| 8.8 percent | ||
| 92.5 percent |
1 points
QUESTION 1
Rosina Gonzales quit her job in Pennsylvania and moved to California to be close to her family. She is currently looking for work, so she would be considered
| frictionally unemployed. | ||
| cyclically unemployed. | ||
| a discouraged worker. | ||
| seasonally unemployed. |
1 points
QUESTION 2
Discouraged workers
| are counted as unemployed workers when the unemployment rate is calculated. | ||
| would decrease the unemployment rate if they were added to the number of unemployed workers. | ||
| are counted as one-half of a worker in the unemployment statistics. | ||
| would increase unemployment rate if they were added to the number of unemployed workers. |
1 points
QUESTION 3
In measuring the unemployment rate, part-time workers are ________ and discouraged workers are ________.
| included as employed; included as unemployed | ||
| excluded; excluded | ||
| excluded; included as unemployed | ||
| included as employed; excluded |
1 points
QUESTION 4
Mary has decided that the she does not like Iowa and has decided to quit her job as a medical technician and move to Arizona. Mary's unemployment as she searches for a new job is best classified as
| frictional. | ||
| cyclical. | ||
| structural. | ||
| seasonal. |
1 points
QUESTION 5
When a golf caddy in Minnesota (where golf courses close in the winter) is unemployed in December, it is most likely the case that the golf caddy is
| cyclically unemployed during long droughts. | ||
| frictionally unemployed during spring and summer. | ||
| structurally unemployed during spring and summer. | ||
| seasonally unemployed. |
1 points
QUESTION 6
After graduating from college, Yunis, age 22, started working for his parent's real estate business as an unpaid assistant. He works 25 hours a week helping manage rental units . In the Current Population Survey, Yunis is considered
| part of the labor force and employed. | ||
| part of the labor force and unemployed. | ||
| a discouraged worker. | ||
| not part of the labor force. |
1 points
QUESTION 7
The working-age population includes
| youngsters between the ages of 14 and 16 if they are working at least part time. | ||
| only employed people over the age of 16. | ||
| those in jails and hospitals. | ||
| employed and unemployed people over the age of 16. |
1 points
QUESTION 8
Involuntary part-time workers are workers who
| work less than 35 hours but would like to work full time. | ||
| work more than 35 hours but would like to work less than 35 hours. | ||
| work less than 35 hours by choice. | ||
| work have lost their jobs within the last four weeks and are seeking another job. |
1 points
QUESTION 9
Frictional unemployment is the result of
| the normal process of jobs being created and destroyed. | ||
| an economic recession. | ||
| people not getting along (having friction) with their employers. | ||
| the economic decline of major industries |
1 points
QUESTION 10
Bill just graduated with his degree in economics. Through Career Services he submitted his resume to several companies and he will visit them during the next two weeks. Bill is considered
| not in the labor force. | ||
| cyclically unemployed. | ||
| frictionally unemployed. | ||
| structurally unemployed. |
1 points
QUESTION 11
Harry works at the video rental store for 20 hours per week. He's asked his boss to allow him to work 40 hours per week, but has been told that business is too slow. Harry is considered
| an involuntary part-time worker. | ||
| a marginally attached worker. | ||
| a discouraged worker. | ||
| not in the labor force. |
1 points
QUESTION 12
Discouraged workers who are over 16 years old are
i.not counted as unemployed.
ii.part of the working-age population.
iii.part of the labor force.
| i and ii | ||
| ii and iii | ||
| ii only | ||
| i only |
1 points
QUESTION 13
Higher unemployment benefits create
| higher seasonal unemployment as workers switch jobs. | ||
| a lower number of job leavers. | ||
| incentives for longer job searches and higher frictional unemployment. | ||
| incentives for shorter job searches and higher structural unemployment. |
1 points
QUESTION 14
Seasonal unemployment includes people who become unemployed from
| changes in the business cycle. | ||
| technological changes. | ||
| the seasonal weather patterns. | ||
| normal changes in the labor force. |
1 points
QUESTION 15
Cyclical unemployment is
| higher when the economy is expanding. | ||
| always greater than the total of structural and frictional unemployment. | ||
| the total of structural and frictional unemployment. | ||
| created by a recession. |
1 points
QUESTION 16
Which of the following people would be classified as employed in the Current Population Survey?
| April, who just graduated from college and is looking for work | ||
| Jason, who was laid off from work less than 6 months ago but who has stopped looking for work | ||
| Rich, who is working 20 hours a week but wants a full-time job | ||
| Misty, who just quit her job to return full time to school |
1 points
QUESTION 17
People who are willing and able to work but are not looking for work because they have been discouraged by their previous futile efforts are called
| discouraged workers. | ||
| involuntarily unemployed. | ||
| part-time lookers. | ||
| unemployed workers. |
1 points
QUESTION 18
Discouraged workers are included in the calculation of the
i.unemployment rate.
ii.labor force participation rate.
iii.working-age population.
| i and ii | ||
| i only | ||
| iii only | ||
| ii only |
1 points
QUESTION 19
As firms search for the best employee to fill an opening and the unemployed search for the job that best fits their skills, the economy experiences
| changes in the business cycle. | ||
| cyclical unemployment. | ||
| frictional unemployment. | ||
| structural unemployment. |
1 points
QUESTION 20
Suppose the U.S. population is 275 million. If 210 million people are of working age, 135 million are employed, and 6 million are unemployed, what is the labor force participation rate?
| 64 percent | ||
| 67 percent | ||
| 76 percent | ||
| 49 percent |
1 points
QUESTION 21
During a recession the unemployment rate generally ________ and during an expansion the unemployment rate generally ________.
| rises; rises | ||
| rises; does not change | ||
| falls; rises | ||
| rises; falls |
1 points
QUESTION 22
In January of 2001, the population of the United States was 276.8 million, the working-age population was 210.2 million, the total number of people employed was 140, and the total number of people unemployed was 5.0 million. What was the labor force participation rate?
| 56 percent | ||
| 69 percent | ||
| 78 percent | ||
| 67 percent |
1 points
QUESTION 23
If Brian, age 24, had no job but was available for work and had looked for a job the week before the survey, Brian is classified in the Current Population Survey as
| unemployed. | ||
| employed. | ||
| a discouraged worker. | ||
| not in the labor force. |
1 points
QUESTION 24
Julie works part-time for economic reasons. She would be considered
| an involuntary part-time worker. | ||
| not in the labor force. | ||
| a job seeker. | ||
| a discouraged worker. |
1 points
QUESTION 25
Suppose the population is 300 million people, the labor force is 200 million people, the number of people employed is 185 million, and the working-age population is 170 million people. What is the unemployment rate?
| 5 percent | ||
| 7.5 percent | ||
| 8.8 percent | ||
| 92.5 percent |
1 points