91Ó°ÊÓ

The unemployment rate is the number of jobless individuals isolated by the complete number of individuals in the general workforce. The term unemployment implies the timeframe during which an individual is jobless and has been consistently searching for work.

Calculating the unemployment rate = $\frac{\text{numberof peopleunemployed}}{\text{Total Population}}×100$

$⇒\frac{10}{200}×100=5\%$

Since a different group of people becomes unemployed each month but becomes employed once again a month later hence the average duration of unemployment is one month.

The establishment of a system of unemployment compensation increases to two months the interval that it takes each group of job losers to become employed each month. Nevertheless, a different group of people still becomes unemployed each month hence the average duration of unemployment is two months.

Following the change discussed in part (c), the country's unemployment rate is

$$\begin{gathered} ⇒\frac{20}{200}×200 \\ =10\% \end{gathered}$$