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1. Consider a model of unemployment where the changes in the unemployment rate (u) is given...

1. Consider a model of unemployment where the changes in the unemployment rate (u) is given by ?u=(b+s)-(b+s+f)u, where b is the rate of entry in the labor force, s is the seperation rate and f is the job findings rate. a. Derive an expression for the steady-state unemployment rate u*.

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