Quick%20Quiz%2013%21 - was s = 0.01. 1. What was the...

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© Hadi Salehi Esfahani Quick Quiz 13! Remember u = 1 / (1 +f/s ). In the US, before 2008, the steady-state monthly job- finding rate was f = 0.18 and the job separation rate was s = 0.01. 1. What was the steady-state unemployment rate before 2008? 2. Since 2009, the unemployment rate has jumped to 9.5 percent and remained at that rate. What is the ratio of job- finding rate to separation rate, f/s , now? 3. If the separation rate has risen to s = 0.02 since 2009, what must be the job-finding rate, f , these days? 4. If the separation rate has remained constant at s = 0.01, what is the average duration of unemployment nowadays?
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© Hadi Salehi Esfahani Solution to Quick Quiz 13! In the United States, before 2008, the steady-state monthly job-finding rate was f = 0.18 and the job separation rate
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Unformatted text preview: was s = 0.01. 1. What was the steady-state unemployment rate before 2008? f/s = 0.18/0.01 = 18 u = 1 / (1 +f/s ) = 1/19 = 5.3% 2. Since 2009, the unemployment rate has jumped to 9.5 percent and remained at that rate. What is the ratio of job-finding rate to separation rate, f/s , now? u = 1 / (1 +f/s ) = 0.095 f/s = 9.52 Hadi Salehi Esfahani Solution to Quick Quiz 13! 3. If the separation rate has risen to s = 0.02 since 2009, what must be the job-finding rate, f , these days? f/s = f /0.02 = 9.52 f = 0.191 4. If the separation rate has remained constant at s = 0.01, what is the average duration of unemployment nowadays? f/s = f /0.01 = 9.52 f = 0.095 Average unemployment duration: 1/ f = 1/0.095 = 10.5 months...
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Quick%20Quiz%2013%21 - was s = 0.01. 1. What was the...

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