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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.

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