Q 9

Consider an economy with a labor force of 200 million people of which 180 million are employed while 20 million are unemployed. Each period, 45% of the unemployed population finds a job. If the economy is in a steady-state of unemployment, what percent of the employed population lose their job each period? A) 5% B) 10% C) 15% D) 20% E) 25%

Multiple Choice