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Consider the economices of Spain and the United States. In Spain, unemployment is 25.1%. There, suppose that in a given period, 9% of the unemployed people will find jobs and 3% of employed people will lose their jobs. In the U.S, unemployment is at 8.1%, 1% of employed people will lose their job, and 19% of unemployed will find jobs.

Determine the natural rate of unemployment in both countires?

What is the cyclical rate of unemployment in each country?

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M9748162

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