A reduction in the unemployment rate will tend to cause which of the following? (a) an increase in the separation rate (b) a reduction in the nominal wage (c) a reduction in the duration that one is unemployed

Letter c is correct. A reduction in the duration that one is unemployed.

Explanation:

The correct alternative is the letter c.

For when there is a reduction in the unemployment rate, it consequently means that there will be a reduction in the duration of unemployment, as this situation implies that there is an increase in the level of employment and therefore the duration of unemployment will also tend to be less, as with more vacancies of unemployment. available jobs, the shorter the duration of unemployed workers.

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