Answer to Question #106106 in Macroeconomics for han

Question

Suppose that a system of unemployment compensation is established. Each month,
30 new people (not including the 20 that employers have chosen not to employ) continue to become unemployed, but each monthly group of newly unemployed now takes two months to find a job. After this change, what is the frictional unemployment rate?

Answer 1

frictional unemployment rate equal to the number of people looking for work to the number of employees.

Uf$=30/1000=0.3$ %