ECO3203 Exam 2 - True & False Practice QUESTIONS AND ANSWERS .

ECO3203 Exam 2 - True & False Practice
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F
Fewer than 10% of all

unemployed workers exit the
About 45% of unemployed workers leave unemployment every
unemployment pool each year
month


T

The unemployment rate tends to

be high in recessions and low in Unemployment and output are inversely related.The

expansions unemployment rate tends to be high in recessions and low in

expansions


F

Most workers are typically paid

their reservation wage Most workers are typically paid a wage greater than their

reservation wage to incentivize them to stay with the company


UNCERTAIN
Workers who do not belong to

unions have no bargaining
Most workers are typically paid a wage greater than their
power
reservation wage to incentivize them to stay with the company


It may be in the best interest of T

employers to pay wages higher

than their workers' reservation This is a good wage to improve moral and reduce quits

wage.


F

The natural rate of

unemployment is unaffected by The natural rate of unemployment can be affected by policy

policy changes changes such as changes in minimum wages or unemployment

benefits


The original Phillips curve is the T

negative relation between

unemployment and inflation that The original Phillips curve is the negative relation between

was first observed in the United unemployment and inflation that was first observed in the United

Kingdom Kingdom