Question

7. In the model of the steady-state unemployment rate with a fixed labor force, the rate of job finding equals the percentage of the ______ who find a job each month, while the rate of job separation equals the percentage of the ______ who lose their job each month.

Answer 1

Unemployed and employed

Step-by-step explanation:

The steady state unemployment rate is also known as the natural rate of unemployment. It is the average rate of unemployment due to which the fluctuation of the economy arises.

So, the rate of job finding = Percentage of unemployed who find a job each month

whereas the separation = Percentage of employed who lost their job each month