Consider the search models of unemployment that we studied in class.

• (3pts) In the one-sided search model of unemployment explain how an unem- ployed worker decides whether or not to accept a job offer. Are all job offers with a higher wage rate than the unemployment benefit accepted? Explain.
• (5pts) In the one-sided search model of unemployment carefully explain the determination of the long-run unemployment rate.

• Through the lens of the two-sided search model explain the repercussions of the enhanced unemployment benefits that have been implemented. What is the rationale for providing these benefits? How do they differ from the unemployment benefits that are the focus of search models?
• "We were wrong to think of this as a trade-offbetween human health and the economy". Explain and comment.