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    Natural rate of unemployment computation

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    Suppose an economy with a constant labor force of 85 million workers is steady-state unemployment. the finding rate is 50% per month and 2.5 million workers lose their jobs every month. what is the natural (long-run) rate of unemployment?

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    Finding rate (usually in month)
    Natural Unemployment = Labor force x ---------------------------------------

    Solution Summary

    This solution computes the natural (long-run) rate of unemployment.