For each of the following situations, would the unemployment rate increase, decrease, or stay the same?

a. A company begins paying efficiency wages above the equilibrium wage rate.

The unemployment rate would

a) stay the same

b) increase

c) decrease

b. The number of workers covered by union contracts falls.

The unemployment rate would

a) stay the same

b) increase

c) decrease

.

c. The government extends the duration of employment insurance.

The unemployment rate would

a) stay the same

b) increase

c) decrease

.