Problem
1. Discuss the impact of the VI system on a job seeker's search behavior. Discuss the impact of the VI system on the firm's layoff behavior.
2. What is the intertemporal substitution hypothesis? Does this argument provide a convincing account of the cyclical trend in the unemployment rate?
3. What is the sectoral shifts hypothesis?
4. Why do implicit contracts generate unemployment?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.