1. During recessions, the job finding rate tends to ["decline", "remain constant", "rise"], while the job...

1. During recessions, the job finding rate tends to ["decline", "remain constant", "rise"], while the job separation rate ["declines", "rises", "remains constant"].

2. When firms open more job positions, the labor market becomes ["tighter", "less tight"], the job-finding rate ["remains constant", "declines", "rises"], and the unemployment rate ["rises", "declines", "remains constant"].

3. The natural unemployment rate describes the unemployment rate when

a) frictional unemployment is 0.

b) real GDP is equal to potential GDP.

c) cyclical unemployment is positive.

d) the economy is no longer in a recession.

Solutions

Expert Solution

1)ANSWER::-- decline, raises......because,during recession,businesses see very less demand for their products which results in reduced production.So people find it very hard to get jobs during this period and companies also start laying off workers resulting in high job seperation rate.

2)ANSWER::-- tight, raises, declines....................because,when firms open more job positions,it will increase the demand for labout making labour market tighter. These events results in people getting more jobs reducing unemployment.

3)ANSWER is option D...........because,Natural rate of unemployment includes the sum of structural and frictional unemployment. It is also called "full employment" unemployment rate.It is the average level of unemployment that is expected to prevail in an economy and in the absence of cyclical unemployment which means economy is no longer in recession.

Rahul Sunny answered 2 years ago

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