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?