Choose the most obviously correct option. Cyclical unemployment is positively related with the growth rate of output. In the last decades, the wage premium of high skill workers has increased because they have become relatively scarce. In the last decades, the wage premium of high skill workers has increased because recent innovations are biased in favour of skilled workers. The natural rate of unemployment increases in recessions and falls in expansions.

Choose the most obviously correct option. Cyclical unemployment is positively related with the growth rate of output. In the last decades, the wage premium of high skill workers has increased because they have become relatively scarce. In the last decades, the wage premium of high skill workers has increased because recent innovations are biased in favour of skilled workers. The natural rate of unemployment increases in recessions and falls in expansions.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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