Business, 11.12.2019 06:31 cair6415

In this chapter we saw that the steady-state rate of unemployment is u/l = s/(s + f). suppose that the unemployment rate does not begin at this level. show that unemployment will evolve over time and reach this steady state. (hint: express the change in the number of unemployed as a function of s, f, and u. then show that if unemployment is above the natural rate, unemployment falls, and if unemployment is below the natural rate, unemployment rises.)choose initial numbers for u, l, and e, assume s=0.01, f=0.19 use excel to show that unemployment will converge to u/l=0.05

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In this chapter we saw that the steady-state rate of unemployment is u/l = s/(s + f). suppose that t...