answerstopracticequestions6spring2005

answerstopracticequestions6spring2005 - Economics 302...

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Economics 302 Spring 2005 Answers to Practice Questions 6 for Chapter 6 Multiple Choice Questions: 1. e. 2. e. 3. e. 4. c. 5. c. 6. d. 7. b. 8. a. 9. d. Problems 1. a. L = 5000 + 500 = 550 U/L = 500/5500 = 9% b. (.25)(500) = 125 people c. (.05)(5000) = 250 people d. U/L = 625/5500 = 11.36% Unemployed U Employed E Initial Situation 500 5000 Change due to job finding -125 +125 Sub-Total 375 5125 Change due to job separation +250 -250 Total 625 4875 e. Unemployed U Employed E Initial Situation (beginning of second month) 625 4875 Change due to job finding -156.25 +156.25 Sub-Total 468.75 5031.25 Change due to job separation +243.75 -243.75 Total 712.50 4787.50 f. fU = sE where f is the rate of job finding and s is the rate of job separation fU = s(L – U) fU = sL – sU (f + s) U = sL U/L = s/(f + s) = 16.67% g. i. U/L = 916.67/5500 = 16.67% ii. It stays constant at 16.67%
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Unemployed U Employed E Initial Situation 916.67 4583.33 Change due to job finding -229.17 +229.17 Sub-Total 687.50 4812.50
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answerstopracticequestions6spring2005 - Economics 302...

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