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April 18, 2014

Homework Help: Economics M/C

Posted by Anonymous on Tuesday, October 25, 2011 at 1:06am.

Please help:

If the rate of separation is 0.02 and the rate of job finding is 0.08 but the current unemployment rate is 0.10, then the current unemployment rate is __ the equilibrium rate, and in the next period it will move __ the equilibrium rate.

a) above; toward
b) above; away from
c) below; toward
d) below; away from

THANKS

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