The City of Hope Has a Labour Force of 1000

Multiple Choice

The city of Hope has a labour force of 1000.Twenty people lose their jobs each month and remain unemployed for exactly one month before finding jobs.On January 1,May 1,and September 1 of each year,50 people lose their jobs for a period of four months before finding new jobs.What is the average duration of an unemployment spell?

A) 2.15 months
B) 2.85 months
C) 3.14 months
D) 3.43 months