A reduction in the unemployment rate will tend to

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9. A reduction in the unemployment rate will tend to cause which of the following?(a) an increase in the separation rate(b) a reduction in the nominal wage(c) a reduction in the duration that one is unemployed(d) none of the above
10. Suppose the aggregate production function is given by the following:Y=AN.Given this information, we know that labor productivity is represented by thefollowing:
11. Based on our understanding of the labor market model presented in Chapter 7,we know that an increase in the employment protection will cause
12. For this question, assume thatY=N. Based on our understanding of the labormarket model presented in Chapter 7, we know that a reduction in the markupwill cause
13. Based on wage setting behavior, we know that an increase in the unemploymentrate will cause3
(a) no change in the real wage.(b) a reduction in the real wage.(c) an increase in the real wage.(d) an upward shift of the wage setting relation.
14. In the Phillips curve equation, which of the following will cause an increase inthe current inflation rate?
15. Which of the following assumptions best characterized the assumption abouthow individuals formed expectations of inflation by the early 1970s?

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