Problem
In a country with a labor force of 200, a different group of 10 people becomes unemployed each month, but becomes employed once again a month later. No others outside these groups are unemployed.
a. What is this country's unemployment rate?
b. What is the average duration of unemployment?
c. Suppose that 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 10 people still becomes unemployed each month. Now what is the average duration of unemployment?
d. Following the change discussed in part (c), what is the country's unemployment rate?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.