Multiple Choice
In the one-sided search model, if the employment insurance benefit goes down
A) the reservation wage goes down and long-run unemployment goes up.
B) the reservation wage goes up and long-run unemployment goes up.
C) the reservation wage and long-run unemployment are unchanged.
D) the reservation wage goes down and long-run unemployment goes down.
E) the reservation wage goes up and long-run unemployment goes down.
Correct Answer:
Verified
Correct Answer:
Verified
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