Gce Model Questions Vol1 2023 Economics Question 43
Practice objective / multiple choice question 43 from the 2023 Gce Model Questions Vol1 Economics examination.
In a labour market the separation rate (the proportion of employed workers who become unemployed each month) is \(s = 0.10\). The matching function between unemployed workers \(U\) and job vacancies \(V = 0.5\) million is \(M = 0.4\sqrt{U\,V}\) matches per month. Assuming a steady state where the number of matches per month equals the number of workers leaving unemployment, determine the total number of unemployed workers and the unemployment rate given a total labour force of 20 million. Then, if structural unemployment accounts for 60 % of the total unemployment, calculate the number of structurally unemployed workers.
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About This Question
This is Gce Model Questions Vol1 2023 Economics Question 43. It is one of the objective questions from the 2023 Gce Model Questions Vol1 Economics examination.
Difficulty level: Medium .
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