This quantity is typically placed on the x-axis of the Beveridge curve, which compares this to vacancy rates.
The Shimer puzzle refers to the fact that this quantity fluctuates more than theoretical predictions of the Mortensen-Pissarides [pis-sar-eedz] model. This quantity is typically placed on the x-axis of the Beveridge curve, which compares this to vacancy rates. Milton Friedman explained how this quantity could increase along with inflation, which weakened reliance on the Phillips curve. The structural form of this quantity tends to be a long-term problem, as opposed to the seasonal form which is due to some work only being available in the summer or only in the winter. Name this quantity that measures the percentage of people who do not have, but are looking for, a job.
The Shimer puzzle refers to the fact that this quantity fluctuates more than theoretical predictions of the Mortensen-Pissarides [pis-sar-eedz] model.
unemployment rate