03 Multiple Choice 'IO Points Answer the following. 03.1 'I Point The Beveridge curve is a{n} relationship between and 0 increasing; market tightness (61, real wage rate (to) O decreasing; market tightness [l9], real wage rate [11!) 0 increasing; market tightness (61, unemployment rate (11.) O decreasing; market tightness [31, unemployment rate {11.1 03.2 'I Point The vacancy supply curve is ain) relationship between and 0 increasing; market tightness (31, real wage rate (to) O decreasing; market tightness [31, real wage rate (to) 0 increasing; market tightness (61, unemployment rate (11.) O decreasing; market tightness [l9], unemployment rate {11.1 03.3 '| Point The wage setting curve is ain) relationship between and 0 increasing; market tightness [31, real wage rate (to) O decreasing; market tightness [31, real wage rate (to) 0 increasing; market tightness (31, unemployment rate [11.) O decreasing; market tightness [31, unemployment rate {11.1 Q3.4 1 Point Which of the following shifts the Beveridge curve? O Cost of opening a vacancy, K O Worker's productivity, y O Separation rate, A O Worker's bargaining power, B Save Answer Q3.5 1 Point Suppose that as the economy grows and occupations become more specialized, matching between workers and firms becomes less efficient. This affects the parameter Which graphically leads to a shift in. O K; vacancy supply curve and wage setting curve O K; vacancy supply curve O A; Beveridge curve O A; Beveridge curve and vacancy supply curve Save Answer Q3.6 1 Point If A is the separation rate and f the job finding rate, then in a steady state equilibrium, the unemployment rate u satisfies Ox/f Save AnswerQ3.7 1 Point A policy that decreases the job separation rate - the vacancy supply curve and the Beveridge curve O shifts out, shifts out O shifts out, shifts in O shifts in, shifts out O shifts in, shifts in Save Answer Q3.8 1 Point Any policy aimed at lowering the steady-state rate of unemployment must either the rate of job separation or _ the rate of job finding O reduce; reduce increase; increase O reduce; increase O increase; reduce Save Answer Q3.9 1 Point In the search-matching model of unemployment, an increase in unemployment benefits shifts the wage-setting curve to the leading to wages and unemployment. O left; higher; lower O right; lower; higher O left; lower; lower O right; higher; higher Save AnswerQ3.10 1 Point In the Diamond-Mortensen-Pissarides model of unemployment, the equilibrium wage rate is determined by the O intersection of the labor demand and labor supply curves O Beveridge curve O intersection of vacancy supply and wage setting curve O marginal product of labor Save