What should the change in vacancies have predicted

Reference no: EM133336848

Question: For the past year, we've been in the midst of the sharpest recession ever, with the fastest, largest loss of employment since records have been kept. At the same time the Federal Reserve and Congress have utilized their policy tools to try to ameliorate the situation. In this final, I would like you to interpret these events through the models presented in class.

1. In the labor market, show the evolution of job vacancies. There are several measures, but the main one from a government statistical agency is job openings from JOLTS and is available on FRED. What should the change in vacancies have predicted about labor foce status flow rates (i.e. job separations or the job finding rate). Can you find evidence that's consistent or inconsistent with that prediction?

Reference no: EM133336848

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