A bathtub model of


A bathtub model of unemployment:

(a) Using the bathtub model of unemployment solve for the unemployment rate with a separation rate of 3% and a finding rate of 10%.

(b) A more general solution: Now assume that some people are separated from them jobs on good terms and on poor terms where s ¯b and on good terms s ¯g and resolve the bathtub model

(c) What unemployment rate does the bathtub model of unemployment solve for?

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Business Economics: A bathtub model of
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