1.If is the separation rate and f the job finding rate, then in a steady state equilibrium, the unemployment rate u satisfies

a. /f

b.f/( +f)

c. /(+f)

d. /(+1)

2.A policy that decreases the job separation rate ______ the vacancy supply curve and ______ the Beveridge curve

a. shifts out, shifts out

b. shifts out, shifts in

c. shifts in, shifts out

d. shifts in, shifts in

3.Any policy aimed at lowering the steady-state 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

4.In the search-matching model of unemployment, an increase in unemployment benefits shifts the wage-setting curve to the ______, leading to ______ wages ______ unemployment.

left; higher; lower

right; lower; higher

left; lower; lower

right; higher; higher

5.In the Diamond-Mortensen-Pissarides model of unemployment, the equilibrium wage rate is determined by the

a. intersection of the labor demand and labor supply curves

b. Beveridge curve

c. intersection of vacancy supply and wage setting curve

d. marginal product of labor