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Assignment:
Assume the following for an imaginary economy.
• 1.5 percent of employed people lose or leave their jobs each month.
• 36.0 percent of unemployed people find a job each month.
• There are 10,000 people in the labor force each month.
1. At the beginning of January there were 9,400 employed people, so the unemployment rate at that point in time was 6 percent. What was the unemployment rate at the beginning of February?
2. What is the steady-state rate of unemployment?
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