1. What effect will an increase in the average job-finding probability (p) have on the steady-state unemployment rate?
(a) Increase
(b) Decrease
(c) No effect
(d) Ambiguous effect
2. If native workers and immigrant workers are complements in production, a sudden surge in immigration will cause:
(a) Native employment to fall; immigrant employment to rise.
(b) Native employment to rise; immigrant employment to rise.
(c) Native employment to rise; immigrant employment to fall.
(d) Native employment to fall; immigrant employment to fall.