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a. The rate of job separation = 0.025 per month
The rate of job finding = 0.4 per month
What is the natural rate of unemployment?
b. If the economy were at a steady-state unemployment rate with a separation rate of 0.025 per month and a job-finding rate of 0.4 per month, and the labor force consists of 100 million workers, on average how many individuals (in absolute number) would lose their jobs each month?
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