Explain what will be unemployment rate


Assume that, initially, the Michigan economy is in equilibrium with no unemployment. The demand for workers is ED = 16,500,000 - 300w and the supply of workers is ES = -1,000,000 + 200w, where w = annual wages, and E = number of employed workers. Then, structural unemployment arises because the demand for labor falls in the Illinois but wages there are inflexible downward and no one moves out of state. If labor demand falls to ED = 15,000,000 - 300w, determine the numbers of workers will be unemployed in Illinois? Explain what will be its unemployment rate?

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Macroeconomics: Explain what will be unemployment rate
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