4. Sectoral shifts, frictional unemployment, and job searches Suppose the world price of wood pulp falls substantially. The demand for labour among wood pulp-producing rms in northern British Columbia will V . The demand for labour among paper and packaging-producing rms in southern British Columbia, for which wood pulp is an input, will v . The temporary unemployment resulting from such sectoral shifts in the economy is best described as v unemployment. Suppose the government wants to reduce this type of unemployment. Which of the following policies would help achieve this goal? Check all that apply. C Establishing government-run employment agencies to connect unemployed workers to job vacancies I: Taxing the price of placing a resume or posting a job opening on a job-search website I: Increasing the benefits offered to unemployed workers through the government's unemployment insurance program 7. The theory of efficiency wages Why might some firms voluntarily pay workers a wage above the market equilibrium, even in the presence of surplus labour? Check all that apply. Paying higher wages encourages workers to be more productive. Paying higher wages tends to reduce the average experience level of a firm's workers. Higher wages attract a more competent pool of workers. Higher wages cause workers to shirk more of their responsibilities