4. (a) Explain clearly the job separation rates and the job finding rate f in thebathtub model of unemployment. Write out the formula for each rate.o In the bathtub model, the separation rate captures the number ofemployed people who lose their job. While Job finding rate captures tnumber of unemployed people who find a new job.Bathtub ModelAU (t+1)= SE (t)-fU (1)Separation rate

The Separation Rate calculates the proportion of workers who quit their jobs during the reporting…

Answered: (a) Explain clearly the job separation…

(a) Explain clearly the job separation rates and the job finding rate f in the bathtub model of unemployment. Write out the formula for each rate.

Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781305971509

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter15: Unemployment

Section: Chapter Questions

Problem 4PA

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Question

4. (a) Explain clearly the job separation rates and the job finding rate f in the
bathtub model of unemployment. Write out the formula for each rate.
o In the bathtub model, the separation rate captures the number of
employed people who lose their job. While Job finding rate captures t
number of unemployed people who find a new job.
Bathtub Model
AU (t+1)= SE (t)-fU (1)
Separation rate

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