Suppose a country has 100 inhabitants the population can be


Question: Suppose a country has 100 inhabitants. The population can be divided into two categories: employed and unemployed. In any given year, the transition probabilities from employed to employed is 0.95 and from unemployed to employed is 0.5. In this case, what is the steady state unemployment rate, the number of employed and unemployed people?

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Microeconomics: Suppose a country has 100 inhabitants the population can be
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