Question 1

In the two-sided search model, an increase in productivity causes

Accepted Answer

A)  the vacancy rate and the unemployment rate to fall. 
B)  output to fall and the vacancy rate to fall. 
C)  labour market tightness to fall and output to fall. 
D)  labour market tightness to rise and output to fall. 
E)  the vacancy rate to rise and the unemployment rate to fall. 
A)  the vacancy rate and the unemployment rate to fall. 
B)  output to fall and the vacancy rate to fall. 
C)  labour market tightness to fall and output to fall. 
D)  labour market tightness to rise and output to fall. 
E)  the vacancy rate to rise and the unemployment rate to fall.

Question 2

In the one-sided search model, if an unemployed worker turns down a job offer,

Accepted Answer

A)  he or she continues to search. 
B)  he or she is not behaving optimally. 
C)  he or she foregoes employment insurance. 
D)  he or she quits searching and drops out of the labour force. 
E)  he or she would be deemed marginally attached to the labour force. 
A)  he or she continues to search. 
B)  he or she is not behaving optimally. 
C)  he or she foregoes employment insurance. 
D)  he or she quits searching and drops out of the labour force. 
E)  he or she would be deemed marginally attached to the labour force.

Question 3

The Beveridge Curve is the

Accepted Answer

A)  negative relationship between the unemployment and vacancy rate. 
B)  negative relationship between the employment and labour force participation rate. 
C)  positive relationship between the unemployment and vacancy rate. 
D)  negative relationship between the employment and vacancy rate. 
E)  positive relationship between unemployment and the labour force participation rate. 
A)  negative relationship between the unemployment and vacancy rate. 
B)  negative relationship between the employment and labour force participation rate. 
C)  positive relationship between the unemployment and vacancy rate. 
D)  negative relationship between the employment and vacancy rate. 
E)  positive relationship between unemployment and the labour force participation rate.

Question 4

In equilibrium in the two-sided search model, labour force participation is

Accepted Answer

A)  the ratio of market tightness to the cost of a vacancy. 
B)  increasing in market tightness. 
C)  decreasing with increases in the benefits from searching. 
D)  decreasing in market tightness. 
E)  not dependent on market tightness. 
A)  the ratio of market tightness to the cost of a vacancy. 
B)  increasing in market tightness. 
C)  decreasing with increases in the benefits from searching. 
D)  decreasing in market tightness. 
E)  not dependent on market tightness.

Question 5

Which of the following is an assumption in the two-sided search model about the matching function?

Accepted Answer

A)  The increase in matches from an increase in Q is increasing in Q. 
B)  The number of matches increases if Q increases but A decreases. 
C)  The number of matches increases if Q or A decrease. 
D)  The increase in matches from an increase in A is increasing in A. 
E)  The increase in matches from an increase in Q is decreasing in Q. 
A)  The increase in matches from an increase in Q is increasing in Q. 
B)  The number of matches increases if Q increases but A decreases. 
C)  The number of matches increases if Q or A decrease. 
D)  The increase in matches from an increase in A is increasing in A. 
E)  The increase in matches from an increase in Q is decreasing in Q.

Question 6

Since World War II, the participation rates

Accepted Answer

A)  of both men and women have increased. 
B)  of men has increased and the participation rate of women has decreased. 
C)  of women has increased and the participation rate of men has decreased. 
D)  of both men and women have decreased. 
E)  of both men and women have remained constant. 
A)  of both men and women have increased. 
B)  of men has increased and the participation rate of women has decreased. 
C)  of women has increased and the participation rate of men has decreased. 
D)  of both men and women have decreased. 
E)  of both men and women have remained constant.

Question 7

Government intervention influences the unemployment rate through

Accepted Answer

A)  its monetary policies. 
B)  its tax policies. 
C)  its regulations. 
D)  employment insurance. 
E)  its stabilization policies. 
A)  its monetary policies. 
B)  its tax policies. 
C)  its regulations. 
D)  employment insurance. 
E)  its stabilization policies.

Question 8

In the two-sided search model, 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 9

In the two-sided search model, an unemployed worker's chances of finding a job depend on

Accepted Answer

A)  his or her search effort. 
B)  employment insurance benefits. 
C)  opportunities in other countries. 
D)  labour market tightness. 
E)  the reservation wage. 
A)  his or her search effort. 
B)  employment insurance benefits. 
C)  opportunities in other countries. 
D)  labour market tightness. 
E)  the reservation wage.

Question 10

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 11

In the two-sided search model, the equilibrium effects of an increase in productivity are to

Accepted Answer

A)  increase market tightness, decrease unemployment, and increase aggregate output. 
B)  decrease market tightness, decrease unemployment, and increase aggregate output. 
C)  decrease market tightness, decrease unemployment, and decrease aggregate output. 
D)  increase market tightness, increase unemployment, and decrease aggregate output. 
E)  increase market tightness, increases unemployment, and increases aggregate output. 
A)  increase market tightness, decrease unemployment, and increase aggregate output. 
B)  decrease market tightness, decrease unemployment, and increase aggregate output. 
C)  decrease market tightness, decrease unemployment, and decrease aggregate output. 
D)  increase market tightness, increase unemployment, and decrease aggregate output. 
E)  increase market tightness, increases unemployment, and increases aggregate output.

Question 12

In the two-sided search model, the choice that responds to economic conditions is

Accepted Answer

A)  an unemployed worker's choice of the reservation wage. 
B)  the government's choice of the employment insurance benefit. 
C)  a firm's choice of how many vacancies to post. 
D)  an unemployed worker's choice of search effort. 
E)  the Beveridge curve. 
A)  an unemployed worker's choice of the reservation wage. 
B)  the government's choice of the employment insurance benefit. 
C)  a firm's choice of how many vacancies to post. 
D)  an unemployed worker's choice of search effort. 
E)  the Beveridge curve.

In the two-sided search model, an increase in productivity causes

In the one-sided search model, if an unemployed worker turns down a job offer,

The Beveridge Curve is the

In equilibrium in the two-sided search model, labour force participation is

Which of the following is an assumption in the two-sided search model about the matching function?

Since World War II, the participation rates

Government intervention influences the unemployment rate through

In the two-sided search model, an increase in matching efficiency, e, could help high unemployment when there is

In the two-sided search model, an unemployed worker's chances of finding a job depend on

Sectoral shifts influences the unemployment rate through

In the two-sided search model, the equilibrium effects of an increase in productivity are to

In the two-sided search model, the choice that responds to economic conditions is

Introduction

Measurement

Business Cycle Measurement

Consumer and Firm Behaviour: 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

A Monetary Intertemporal Model: 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 two-sided search model, an increase in productivity causes

In the one-sided search model, if an unemployed worker turns down a job offer,

The Beveridge Curve is the

In equilibrium in the two-sided search model, labour force participation is

Which of the following is an assumption in the two-sided search model about the matching function?

Since World War II, the participation rates

Government intervention influences the unemployment rate through

In the two-sided search model, an increase in matching efficiency, e, could help high unemployment when there is

In the two-sided search model, an unemployed worker's chances of finding a job depend on

Sectoral shifts influences the unemployment rate through

In the two-sided search model, the equilibrium effects of an increase in productivity are to

In the two-sided search model, the choice that responds to economic conditions is

Introduction

Measurement

Business Cycle Measurement

Consumer and Firm Behaviour: 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

A Monetary Intertemporal Model: 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