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Suppose that there is a fixed number of workers.
Each worker is at a certain instance either employed or unemployed.
The average duration of a period of unemployment is Du=10 months, and the average duration of a period of employment is De = 40 months.
Use the model of labor market flows between these two states to answer the following questions.
1) What is (in rate per month) the rate of job finding (f) ?
2) What is the rate of job separation (s) ?
3) What is the equilibrium unemployment rate (u) ?
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Ryan has $200 per week to spend on gas and food. The price of gas is $4/gallon and the price of food is $2 unit. What is the opportunity cost of an additional unit of food in terms of gallons of gas? What is the opportunity cost of a gallon of gas in..
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What will happen to GDP and employment? What do you think will be the impact on banks and other financial institutions? Do you agree with the bill?
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