Its True and false questions and also need to be explained why its true or false
ID: 1183967 • Letter: I
Question
Its True and false questions and also need to be explained why its true or false.. a) if there is a natural rate of unemployment,there must be a corrsponding natural rate of employment b) if there is wage rigidity, increasing labor demand will increase the natural rate of unemployment c) if the separation rate is greater than the rate of finding a job in the steady state, there must be more employed people than unemployed d) if the government provides more generous unemployment benefits, the amount of structural unemployment in the economy increases e) if the separation rate is 20% and the rate of finding a job is 30%, then the natural rate of unemployment is 66.7% thank you..Explanation / Answer
1) True. search weekipedia 2)True Wage Rigidity The general difficulty a company experiences in trying to reduce wages. Whether because of a labor agreement, fears for lost productivity or other reasons, companies often find it hard to reduce employee wages or salaries. For this reason, many (though far from all) companies elect to conduct layoffs rather than wage reductions when facing losses or lower profits. 3) False 4)True 5) False
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