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An Increase in an Individual's Reservation Wage

Question 1

Multiple Choice

An increase in an individual's reservation wage


A) will increase the duration of the individual's unemployment but not affect the expected wage.
B) will increase the individual's expected wage but not affect the duration of unemployment.
C) will not change the individual's duration of unemployment.
D) will increase both the individual's duration of unemployment and expected wage.

Correct Answer:

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