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In the One-Sided Search Model, If the Job Offer Rate

Question 1

Multiple Choice

In the one-sided search model, if the job offer rate goes down,


A) the reservation wage goes down and the effect on long-run unemployment is ambiguous.
B) the reservation wage goes up and long-run unemployment goes down.
C) the reservation wage and long-run unemployment are unchanged.
D) the reservation wage goes up and long-run unemployment goes up.
E) unemployed workers stop searching.

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