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Which model is most relevant for displaced workers

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1: The job search framework might be able to explain why:

A: Insiders tend to exhibit lower unemployment rates than outsiders

B: Unemployment displays a very counter-cyclical pattern over time

C: Young workers have much higher unemployment rates than their older counterparts

D: Wages tend to adjust pretty quickly to shocks and changes in the labour market

E; Structural unemployment can be quite persistent over time

2: According to the competitive labour market, unemployment is characterized by which of the following?

A: At the transactions wage, there is excess quantity supplied of workers

B: An efficiency wage is being paid

C: Insiders have negotiated wages that do not favour the interests of outsiders

D: An implicit contract is in effect

E: Search frictions are in effect

3: Which model is most relevant for displaced workers?

A: The implicit contract approach

B: The insider-outsider approach

C: The job search approach

D: The competitive labour market

E: None of these above

Reference no: EM133217580

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