Question 1

In the DMP model,the number of firms is

Accepted Answer

A)  endogenous. 
B)  neither endogenous nor exogenous. 
C)  fixed. 
D)  exogenous. 
E)  irrelevant. 
A)  endogenous. 
B)  neither endogenous nor exogenous. 
C)  fixed. 
D)  exogenous. 
E)  irrelevant.

Question 2

The unemployment rate is defined as

Accepted Answer

A)   
B)   
C)   
D)   
E)   
A)   
B)   
C)   
D)   
E)

Question 3

According to a study by Richard Rogerson,higher unemployment in Europe relative to the United States is explained by the fact that in Europe

Accepted Answer

A)  taxes are higher. 
B)  a larger percentage of the work force is unionized. 
C)  the service sector grew more slowly. 
D)  there are tougher legal restrictions on the hiring and firing of employees. 
E)  unemployment benefits are more generous. 
A)  taxes are higher. 
B)  a larger percentage of the work force is unionized. 
C)  the service sector grew more slowly. 
D)  there are tougher legal restrictions on the hiring and firing of employees. 
E)  unemployment benefits are more generous.

Question 4

An increase in matching efficiency,e,could help high unemployment when there is

Accepted Answer

A)  demographic changes. 
B)  a large degree of mismatch. 
C)  high labour force participation. 
D)  an increase in aggregate economic activity. 
E)  low labour force participation. 
A)  demographic changes. 
B)  a large degree of mismatch. 
C)  high labour force participation. 
D)  an increase in aggregate economic activity. 
E)  low labour force participation.

Question 5

Which of the following is puzzling about the recent data on productivity and unemployment in the U.S.and Canada?

Accepted Answer

A)  Productivity growth is higher in the U.S. but the unemployment rate is lower in Canada. 
B)  Productivity and unemployment are completely unrelated. 
C)  Productivity growth is higher in Canada. but the unemployment rate is lower in the U.S.. 
D)  Productivity growth is higher in the U.S. but the unemployment rate is lower in the U.S. 
E)  Productivity growth is higher in Canada. but the unemployment rate is lower in Canada. 
A)  Productivity growth is higher in the U.S. but the unemployment rate is lower in Canada. 
B)  Productivity and unemployment are completely unrelated. 
C)  Productivity growth is higher in Canada. but the unemployment rate is lower in the U.S.. 
D)  Productivity growth is higher in the U.S. but the unemployment rate is lower in the U.S. 
E)  Productivity growth is higher in Canada. but the unemployment rate is lower in Canada.

Question 6

The current Employment Insurance program suffers from

Accepted Answer

A)  too high of Employment Insurance benefits in poorer regions. 
B)  moral hazard problems. 
C)  a tradeoff between benefits of insurance and the costs of moral hazard. 
D)  declining Employment Insurance benefits over time. 
E)  the unemployed tends to be more selective concerning jobs offered that they will accept. 
A)  too high of Employment Insurance benefits in poorer regions. 
B)  moral hazard problems. 
C)  a tradeoff between benefits of insurance and the costs of moral hazard. 
D)  declining Employment Insurance benefits over time. 
E)  the unemployed tends to be more selective concerning jobs offered that they will accept.

Question 7

In the DMP model,an increase in productivity

Accepted Answer

A)  shifts v(Q) down, increasing Q and j. 
B)  shifts v(Q) up, increasing Q and decreasing j. 
C)  shifts v(Q) up, decreasing Q and j. 
D)  shifts v(Q) down, decreasing Q and increasing j. 
E)  shifts v(Q) up, increasing Q and j. 
A)  shifts v(Q) down, increasing Q and j. 
B)  shifts v(Q) up, increasing Q and decreasing j. 
C)  shifts v(Q) up, decreasing Q and j. 
D)  shifts v(Q) down, decreasing Q and increasing j. 
E)  shifts v(Q) up, increasing Q and j.

Question 8

Over the last half of the 20th century in Canada,the participation rate

Accepted Answer

A)  has remained constant. 
B)  has declined. 
C)  increased sharply. 
D)  has been quite variable. 
E)  has declined since 1980. 
A)  has remained constant. 
B)  has declined. 
C)  increased sharply. 
D)  has been quite variable. 
E)  has declined since 1980.

Question 9

According to research by Wang and Williamson,the optimal Employment Insurance program

Accepted Answer

A)  should depend only on the history of unemployment. 
B)  should depend on the entire history of employment and unemployment 
C)  should be independent of employment histories but dependent on unemployment histories. 
D)  should depend only on the most recent employment spell. 
E)  should depend on the entire employment history, but not unemployment histories. 
A)  should depend only on the history of unemployment. 
B)  should depend on the entire history of employment and unemployment 
C)  should be independent of employment histories but dependent on unemployment histories. 
D)  should depend only on the most recent employment spell. 
E)  should depend on the entire employment history, but not unemployment histories.

Question 10

In the DMP model,there

Accepted Answer

A)  is a single representative agent. 
B)  is an exogenously fixed number of firms. 
C)  are N total consumers and N total firms. 
D)  are N total consumers 
E)  are only employed and unemployed consumers. 
A)  is a single representative agent. 
B)  is an exogenously fixed number of firms. 
C)  are N total consumers and N total firms. 
D)  are N total consumers 
E)  are only employed and unemployed consumers.

Question 11

Based on the predictions of the DMP model,the Beveridge curve

Accepted Answer

A)  could be explained by changes to Employment Insurance, but this is not plausible in reality. 
B)  could be explained by changes to Employment Insurance which are plausible in reality. 
C)  is a feature the model fails to explain. 
D)  is plausible in reality but is not consistent with the model. 
E)  is neither plausible in reality or consistent with the model. 
A)  could be explained by changes to Employment Insurance, but this is not plausible in reality. 
B)  could be explained by changes to Employment Insurance which are plausible in reality. 
C)  is a feature the model fails to explain. 
D)  is plausible in reality but is not consistent with the model. 
E)  is neither plausible in reality or consistent with the model.

Question 12

Sectoral shifts influences the unemployment rate through

Accepted Answer

A)  a shift away from services industries and toward manufacturing industries. 
B)  a shift away from manufacturing industries and toward services industries. 
C)  a shift away from blue collar jobs and toward services industries. 
D)  a shift way from white collar jobs and toward blue collar jobs. 
E)  a shift away from agriculture and toward oil and gas production. 
A)  a shift away from services industries and toward manufacturing industries. 
B)  a shift away from manufacturing industries and toward services industries. 
C)  a shift away from blue collar jobs and toward services industries. 
D)  a shift way from white collar jobs and toward blue collar jobs. 
E)  a shift away from agriculture and toward oil and gas production.

Question 13

The participation rate tends to be procyclical because

Accepted Answer

A)  the size of the labour force is procyclical. 
B)  the sizes of both the labour force and the total population are procyclical. 
C)  the size of the labour force is procyclical and the size of the total population is countercyclical. 
D)  the unemployment rate is countercyclical. 
E)  employment is procyclical. 
A)  the size of the labour force is procyclical. 
B)  the sizes of both the labour force and the total population are procyclical. 
C)  the size of the labour force is procyclical and the size of the total population is countercyclical. 
D)  the unemployment rate is countercyclical. 
E)  employment is procyclical.

Question 14

In the DMP model,Nash Bargaining implies

Accepted Answer

A)  the firm receives the total surplus from a match. 
B)  the worker receives the total surplus from a match. 
C)  the firm and the worker receive a constant share of the surplus from a match. 
D)  the firm receives an increasing share of the surplus and the worker a decreasing share. 
E)  the firm and the worker reduce the total surplus to zero. 
A)  the firm receives the total surplus from a match. 
B)  the worker receives the total surplus from a match. 
C)  the firm and the worker receive a constant share of the surplus from a match. 
D)  the firm receives an increasing share of the surplus and the worker a decreasing share. 
E)  the firm and the worker reduce the total surplus to zero.

Question 15

In the Keynesian DMP model,the high wage equilibrium

Accepted Answer

A)  has lower market tightness than the low wage equilibrium. 
B)  has higher market tightness than the low wage equilibrium. 
C)  is usually not attainable. 
D)  represents an increase in bargaining power for firms. 
E)  has the same market tightness as the low wage equilibrium. 
A)  has lower market tightness than the low wage equilibrium. 
B)  has higher market tightness than the low wage equilibrium. 
C)  is usually not attainable. 
D)  represents an increase in bargaining power for firms. 
E)  has the same market tightness as the low wage equilibrium.

Question 16

Constant returns to scale in the matching function means that,given any constant x > 0,

Accepted Answer

A)    
B)    
C)    
D)    
E)    
A)    
B)    
C)    
D)    
E)

Question 17

According to research by Wang and Williamson,the optimal Employment Insurance program

Accepted Answer

A)  could be implemented with EI accounts, but the welfare gains are relatively small. 
B)  could be implemented with EI accounts and the welfare gains are large. 
C)  could not be implemented but the welfare gains are large. 
D)  is independent of the moral hazard problem. 
E)  looks very similar to the existing program in Canada. 
A)  could be implemented with EI accounts, but the welfare gains are relatively small. 
B)  could be implemented with EI accounts and the welfare gains are large. 
C)  could not be implemented but the welfare gains are large. 
D)  is independent of the moral hazard problem. 
E)  looks very similar to the existing program in Canada.

Question 18

According to the DMP model,in equilibrium the number of firms is

Accepted Answer

A)  negatively related to the cost of posting a vacancy. 
B)  negatively related to the productivity of a match. 
C)  positively related to the level of employment insurance benefits. 
D)  positively related to the cost of posting a vacancy. 
E)  the firm's share of the total surplus from a match. 
A)  negatively related to the cost of posting a vacancy. 
B)  negatively related to the productivity of a match. 
C)  positively related to the level of employment insurance benefits. 
D)  positively related to the cost of posting a vacancy. 
E)  the firm's share of the total surplus from a match.

Question 19

In the Keynesian DMP model,the high wage equilibrium has

Accepted Answer

A)  more unemployment, more vacancies, and higher output relative to the low wage equilibirum. 
B)  less unemployment, fewer vacancies, and lower output relative to the low wage equilibirum. 
C)  more unemployment, fewer vacancies, and uncertain output relative to the low wage equilibirum. 
D)  more unemployment, more vacancies, and uncertain output relative to the low wage equilibirum. 
E)  less unemployment, more vacancies, and uncertain output relative to the low wage equilibirum. 
A)  more unemployment, more vacancies, and higher output relative to the low wage equilibirum. 
B)  less unemployment, fewer vacancies, and lower output relative to the low wage equilibirum. 
C)  more unemployment, fewer vacancies, and uncertain output relative to the low wage equilibirum. 
D)  more unemployment, more vacancies, and uncertain output relative to the low wage equilibirum. 
E)  less unemployment, more vacancies, and uncertain output relative to the low wage equilibirum.

Question 20

The matching function captures the difficulties in

Accepted Answer

A)  matching heterogeneous firms with heterogenous workers. 
B)  matching capital with labour. 
C)  matching heterogenous firms with homogeneous workers. 
D)  matching homogeneous firms with heterogeneous workers. 
E)  matching homogeneous firms with homogeneous workers. 
A)  matching heterogeneous firms with heterogenous workers. 
B)  matching capital with labour. 
C)  matching heterogenous firms with homogeneous workers. 
D)  matching homogeneous firms with heterogeneous workers. 
E)  matching homogeneous firms with homogeneous workers.

In the DMP model,the number of firms is

The unemployment rate is defined as

According to a study by Richard Rogerson,higher unemployment in Europe relative to the United States is explained by the fact that in Europe

An increase in matching efficiency,e,could help high unemployment when there is

Which of the following is puzzling about the recent data on productivity and unemployment in the U.S.and Canada?

The current Employment Insurance program suffers from

In the DMP model,an increase in productivity

Over the last half of the 20th century in Canada,the participation rate

According to research by Wang and Williamson,the optimal Employment Insurance program

In the DMP model,there

Based on the predictions of the DMP model,the Beveridge curve

Sectoral shifts influences the unemployment rate through

The participation rate tends to be procyclical because

In the DMP model,Nash Bargaining implies

In the Keynesian DMP model,the high wage equilibrium

Constant returns to scale in the matching function means that,given any constant x > 0,

According to research by Wang and Williamson,the optimal Employment Insurance program

According to the DMP model,in equilibrium the number of firms is

In the Keynesian DMP model,the high wage equilibrium has

The matching function captures the difficulties in

Introduction

Measurement

Business Cycle Measurement

Consumer and Firm Behavior: The Work–Leisure Decision and Profit Maximization

A Closed-Economy One-Period Macroeconomic Model

Economic Growth: Malthus and Solow

Income Disparity Among Countries and Endogenous Growth

A Two-Period Model: The Consumption–Savings Decision and Credit Markets

Credit Market Imperfections: Credit Frictions, Financial Crises, and Social Security

A Real Intertemporal Model with Investment

Money, Banking, Prices, and Monetary Policy

Business Cycle Models with Flexible Prices and Wages

New Keynesian Economics: Sticky Prices

Inflation: Phillips Curves and Neo-Fisherism

International Trade in Goods and Assets

Money in the Open Economy

Money, Inflation, and Banking: A Deeper Look

Filters

Exam 6: Search and Unemployment

In the DMP model,the number of firms is

The unemployment rate is defined as

According to a study by Richard Rogerson,higher unemployment in Europe relative to the United States is explained by the fact that in Europe

An increase in matching efficiency,e,could help high unemployment when there is

Which of the following is puzzling about the recent data on productivity and unemployment in the U.S.and Canada?

The current Employment Insurance program suffers from

In the DMP model,an increase in productivity

Over the last half of the 20th century in Canada,the participation rate

According to research by Wang and Williamson,the optimal Employment Insurance program

In the DMP model,there

Based on the predictions of the DMP model,the Beveridge curve

Sectoral shifts influences the unemployment rate through

The participation rate tends to be procyclical because

In the DMP model,Nash Bargaining implies

In the Keynesian DMP model,the high wage equilibrium

Constant returns to scale in the matching function means that,given any constant x > 0,

According to research by Wang and Williamson,the optimal Employment Insurance program

According to the DMP model,in equilibrium the number of firms is

In the Keynesian DMP model,the high wage equilibrium has

The matching function captures the difficulties in

Introduction

Measurement

Business Cycle Measurement

Consumer and Firm Behavior: The Work–Leisure Decision and Profit Maximization

A Closed-Economy One-Period Macroeconomic Model

Economic Growth: Malthus and Solow

Income Disparity Among Countries and Endogenous Growth

A Two-Period Model: The Consumption–Savings Decision and Credit Markets

Credit Market Imperfections: Credit Frictions, Financial Crises, and Social Security

A Real Intertemporal Model with Investment

Money, Banking, Prices, and Monetary Policy

Business Cycle Models with Flexible Prices and Wages

New Keynesian Economics: Sticky Prices

Inflation: Phillips Curves and Neo-Fisherism

International Trade in Goods and Assets

Money in the Open Economy

Money, Inflation, and Banking: A Deeper Look

Filters