Question

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. A. labor force; labor force B. labor force; unemployed C. employed; labor force D. unemployed; employed

Answer 1

Answer:

D. unemployed; employed

Explanation:

When there is a steady rate of unemployment, with a fixed labor force, then the rate of job findings shall be equal to the number of unemployed labor force who finds job in each of the month, while the job separation rate shall be computed with respect to people employed and now have left their job due to any reasons that is employees who are now unemployed.

Therefore, correct option is

D. unemployed; employed