a. The rate of job separation = 0.025 per month
The rate of job finding = 0.4 per month
What is the natural rate of unemployment?
b. If the economy were at a steady-state unemployment rate with a separation rate of 0.025 per month and a job-finding rate of 0.4 per month, and the labor force consists of 100 million workers, on average how many individuals (in absolute number) would lose their jobs each month?
Please show all work