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.