Solving for the“equilibrium”U rate f×U SxE =sx(L-U) SxL-SxU Solve for U/L: (f+SxU=s×L s0, U 5 L s+f CHAPTER 6 Unemployment slide 9 slide 9 f U = s E = s (L –U ) = s L – s U Solve for U/L: (f + s)U = s L so, U s L s f   1