1. At the end of the future period, in the real intertemporal model with investment: A) Group of answer choices B) the firm's capital is converted into labor. C) the firm's capital becomes useless and is thrown away. D) the firm can convert capital one-for-one into consumption goods. E) the firm's capital is used to produce more capital for the distant future. 2. In the one-period closed-economy model, suppose there is a pandemic and
1. At the end of the future period, in the real intertemporal model with investment:
A) Group of answer choices
B) the firm's capital is converted into labor.
C) the firm's capital becomes useless and is thrown away.
D) the firm can convert capital one-for-one into consumption goods.
E) the firm's capital is used to produce more capital for the distant future.
2. In the one-period closed-economy model, suppose there is a pandemic and people are forced to work from home, and their productivity is lower as a result. What would the model predict?
A) An increase in consumption and output, and the real wage increases.
B) A decrease in consumption and output; real wages remain the same because they result from a bargaining process.
C) A decrease in consumption and real wages; output increases because firms hire more labor.
D) A decrease in consumption and real wages; output decreases because of lower productivity.
3. In the one-sided search model, if an unemployed worker turns down a job offer,
A) she continues to search for a job.
B) she is not behaving optimally because she needs a job.
C) she receives her
D) she foregoes unemployment insurance.
4. In the two-sided search model, a decrease in matching efficiency
A) can happen when the government increases unemployment benefits.
B) can happen when there is a sectoral shock.
C) can happen when there is a financial crisis.
D) can happen when firms are less productive.
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