1.The following have at times been advocated for coping with unemployment. Briefly explain how each might work and explain which type or types of unemployment (frictional, structural, or cyclical) each policy is designed to alter.

a. A computer list of job openings and a service that matches employees with job vacancies (sometimes called an "economic dating service")

b. Lower minimum wage for teenagers.

c. Retraining programs for workers who need to learn new skills to find employment.

d. Public employment for people without jobs.

e. Improved information about available jobs and current wage rates.

f. The president's going on nationwide TV and attempting to convince firms and workers that the inflation rate next year will be low.

2. In which if the following situations will you best off, and in which will you be worst off, in terms of your real wage?

a. You are offered 5 percentage wage increase and the inflation rate for the year turns out to be 7 percent.

b. You are offered 1 percentage wage increase and the inflation rate for the year turns out to be -2 percent.

c. You are offered 12 percentage wage increase and the inflation rate for the year turns out to be 16 percent.

d. You are offered 6 percentage wage increase and the inflation rate for the year turns out to be 6 percent.

e. You are offered 7 percentage wage increase and the inflation rate for the year turns out to be 3 percent.