Reference no: EM13862708
Assume that the job separation rate s is 0.01 (1%) per month and that the job finding rate f is 0.2 (20%) per month.
Assume that the labor force today (period t = 0) is 100 million.
(a) What is the steady state unemployment rate for this economy?
(b) Given that L = 100 million, what is the steady state number of employed E and unemployed U today in period t = 0?
(c) Assume U.S. immigration policy changed tomorrow (period t = 1) such that we allowed more people to enter the country and L increased to 110 million from its inital value of 100 million. Assume that these new entrants would be unemployed first and then find jobs at the job finding rate f .That is, at time t = 1, the number of unemployed is U1 =U+10 million, and the number of employed equals E1 = E. Create a table (maybe in Excel) that shows how Et , Ut , and Ut=L evolve over time, given s = 0:01 and f = 0:2, starting at t = 1 and ending when the unemployment rate reaches its steady stateU=L rounded to the nearest thousandth (tenth of a percent).
(d) In the table from the previous scenario, how many periods does it take for the unemployment rate to reach its steady state level rounded to the nearest thousandth (tenth of a percent)?
Use same parameters
: Use same parameters as in question 4 & 5: A0=100 l=0.20 z=1/500 L=100 What is the level of output per person after 100 years?
|
Difference between the pce and the gdp deflator
: How is the PCE calculated? What is the difference between the PCE and the GDP deflator? What is the difference between the PCE and the core PCE?
|
Why are reality shows popular?
: Why are reality shows popular?
|
Prepare a computation of net sales for the month of july
: Journalize each transaction. Use the following account names: Cash, Short-term Investments, Dividend Revenue, Unrealized Gain (Loss) on Investment, and Gain on Sale of Investment - Prepare a computation of net sales for the month of July.
|
Steady state level rounded to the nearest thousandth
: Assume that the job separation rate s is 0.01 (1%) per month and that the job finding rate f is 0.2 (20%) per month. What is the steady state unemployment rate for this economy? In the table from the previous scenario, how many periods does it take f..
|
Calculate the equilibrium price and quantity
: (a) Calculate the equilibrium price and quantity in this market. Graph the demand and supply curves and illustrate your equilibrium point.(b) Calculate both the elasticities of demand and supply at the equilibrium point. How would a small increase in..
|
What are the parameters and considerations that must be made
: Consider what are the parameters and considerations that must be made when developing the employee schedules for the retail stores at Feets. Are there software packages to assist in this activity
|
An entrepreneur runs the business that hires
: Consider a simple economy, with just three occupations: subsistence producer, industrial worker, and entrepreneur. Subsistence producers can produce some fixed amount valued $2,000 with their labor. An industrial worker can earn a wage w. An entrepre..
|
Class action cases and corporate liability cases
: What are your thoughts on tort reform, more specifically setting caps/limits (ceilings) on jury awards/verdicts in tort liability cases. Class action cases? Corporate liability cases? Is this a good idea? Who would lobby for these caps? Who DOES lobb..
|