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During the course of a?year, the labor force consists of the same 946 people. Of ?these, 24 lack skills that employers desire and hence remain unemployed throughout the year. At the same?time, every month during the year, 40 different people become ?unemployed, and 40 other different people who were unemployed find jobs. There is no cyclical unemployment.
Enter all answers as a percentage rounded to two decimal places.
a) Calculate the frictional unemployment rate:____%
b) Calculate the unemployment rate:____
c) Suppose that a system of unemployment compensation is established. Each month, 40 new people?(not including the 24 lacking required ?skills) continue to become?unemployed, but each monthly group of newly unemployed now takes two months to find a job. Calculate the frictional unemployment rate after this change. ____%
d) After the change discussed in part (c), calculate the unemployment rate ____%
A manufacturer of infant clothes has found that the demand for its product is given by Q = 100P-1.25A0.5, where P is price and A is advertising expenditures. The price elasticity of demand for these infant clothes is? Show me the work
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