Multiple Choice
In the one-sided search model, if the job offer rate goes down
A) the reservation wage goes up and long-run unemployment goes down.
B) the reservation wage goes down and the effect on long-run unemployment is ambiguous.
C) the reservation wage goes up and long-run unemployment goes up.
D) unemployed workers stop searching.
E) the reservation wage and long-run unemployment are unchanged.
Correct Answer:

Verified
Correct Answer:
Verified
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