Refer to the figure above. The labor market is currently at point E. Which of the following is likely to happen if a recession hits the economy assuming that wages are flexible?
A) The labor market equilibrium will move from E to H.
B) The labor market equilibrium will move from E to D.
C) The labor market equilibrium will move from E to F.
D) The labor market equilibrium will move from E to G.
Question 2
Which of the following statements is true?
A) Job search refers to the activities that workers undertake to find appropriate jobs.
B) It is easier to find full-time suitable employment than to find seasonal part-time employment.
C) In a competitive market, workers who demand a wage higher than the equilibrium wage rate are likely to get employed faster.
D) Job search is normally a month-long process.
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