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Suppose a country has 100 inhabitants. The population can be divided into two categories: employed and unemployed. In any given year, the transition probabilities from employed to employed is 0.95 and from unemployed to employed is 0.5. In this case, what is the steady state unemployment rate, the number of employed and unemployed people?
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In markets economics, firms rarely worry about the availability of inputs to produce their products, whereas in command economies input availability is a constant concern. Why the diference.
According to the Central Limit Theorem
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