In a country with a labor force of 200, a different group of 8

Question

people becomes unemployed each​ month, but becomes employed once again a month later. No others outside these groups are unemployed.
Part 2
a. Calculate this​ country's unemployment rate%.
  ​(Enter
your response as a percentage rounded to two decimal​ places.)

Answer 1

There are 8 unemployed people out of a labor force of 200, so the unemployment rate is:

(8/200) x 100% = 4%

Therefore, the unemployment rate is 4%.

Answer 2

b. The average duration of unemployment in this country is 

Answer 3

The average duration of unemployment in this country is 1 month, since each group of 8 people becomes unemployed for one month and then becomes employed again the next month. Therefore, the average duration of unemployment is 1 month.

Answer 4

c. Suppose the establishment of a system of unemployment compensation increases to two months the interval that it takes each group of job losers to become employed each month.​ Nevertheless, a different group of 8

people still becomes unemployed each month. Now the average duration of unemployment is

Answer 5

With the new system of unemployment compensation, each group of 8 job losers takes 2 months to become employed again. This means that there will be 2 groups of unemployed people at any given time - the group that became unemployed in the current month, and the group that became unemployed the previous month.

So, the average duration of unemployment under the new system is:

(1 month for the current group + 2 months for the previous group) / 2 groups = 1.5 months

Therefore, the average duration of unemployment under the new system is 1.5 months.

Answer 6

ollowing the establishment of a system of unemployment​ compensation, calculate the​ country's unemployment rate. enter your response here
​%
​(Enter
your response as a percentage rounded to two decimal​ places.)

Answer 7

d. Following the establishment of a system of unemployment​ compensation, calculate the​ country's unemployment rate​%.
​(Enter
your response as a percentage rounded to two decimal​ places.)

Answer 8

With the new system of unemployment compensation, there are always 2 groups of 8 unemployed people, out of a labor force of 200. Therefore, the total number of unemployed people is 16, and the unemployment rate is:

(16/200) x 100% = 8%

Therefore, the unemployment rate with the new system of unemployment compensation is 8%.