Author Question: An increase in the time spent on job search A) decreases the unemployment rate. B) decreases the ... (Read 125 times)

pepyto · **on:** Jun 29, 2018

An increase in the time spent on job search

A) decreases the unemployment rate.
B) decreases the real wage rate.
C) decreases the labor force participation rate.
D) decreases potential GDP.
E) decreases the demand for labor.

Question 2

Sherri lives in Canada and is considering buying a new sofa. If the price level in Canada falls and the price level in the United States does not change, Canadian manufactured sofas are relatively

A) less expensive, so Sherri will likely purchase a U.S. manufactured sofa.
B) less expensive, so Sherri will likely purchase a Canadian manufactured sofa.
C) more expensive, so Sherri will likely purchase a U.S. manufactured sofa.
D) more expensive, so Sherri will likely purchase a Canadian manufactured sofa.
E) Both answers B and D could be correct depending on whether U.S. manufactured sofas were initially more expensive or less expensive than Canadian sofas.