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What is the average spell of employment

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Consider an economy where there are 100 unemployed persons and 900 employed persons. The job finding rate (f) of the economy is 0.3 and job separation rate of the economy (s) is 0.02.

(a) What is the average spell of employment?

(b) What is the average spell of unemployment?

(c) How many unemployed persons find jobs?

(d) How many employed persons lose their jobs?

(e) What is the steady-state unemployment rate?

Reference no: EM131415523

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