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1. What effect will an increase in the average job-finding probability (p) have on the steady-state unemployment rate?
1. What effect will an increase in the average job-finding probability (p) have on the steady-state unemployment rate?
(a) Increase
(b) Decrease
(c) No effect
(d) Ambiguous effect
2. If native workers and immigrant workers are complements in production, a sudden surge in immigration will cause:
(a) Native employment to fall; immigrant employment to rise. (b) Native employment to rise; immigrant employment to rise. (c) Native employment to rise; immigrant employment to fall. (d) Native employment to fall; immigrant employment to fall.
