The model of the steady-state rate of unemployment assumes, Business Economics

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The model of the steady-state rate of unemployment assumes

The model of the steady-state rate of unemployment assumes that the size of the labor force is fixed. If the size of the labor force is allowed to vary:

1. Please tells me how the job-loss and job-finding processes will differ from the situation when the labor force is fixed.

2. How interpretations of changes in the unemployment rate will become less clear?

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Business Economics: The model of the steady-state rate of unemployment assumes

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Business Economics: The model of the steady-state rate of unemployment assumes

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