Any Policy Aimed at Lowering the Natural Rate of Unemployment
Any policy aimed at lowering the natural rate of unemployment must either ______ the rate of job separation or ______ the rate of job finding.
A) reduce; reduce
B) increase; increase
C) reduce; increase
D) increase; reduce
One reason for unemployment is that:
A) it takes time to match workers and jobs.
B) all jobs are identical.
C) the labour market is always in equilibrium.
D) a laid-off worker can immediately find a new job at the market wage.
All of the following are reasons for frictional unemployment except:
A) workers have different preferences and abilities.
B) unemployed workers accept the first job offer that they receive.
C) the flow of information is imperfect.
D) geographic mobility takes time.
Frictional unemployment is unemployment caused by:
A) wage rigidity.
B) minimum-wage legislation.
C) the time it takes workers to search for a job.
D) clashes between the motives of insiders and outsiders.