Question

The relationship between job openings and the rate of unemployment as depicted in a standard Beveridge curve, indicates that

Group of answer choices

low unemployment is linked to low number of job openings.

during an expansionary period, unemployment rate is low and inflation is high.

when unemployment is high, job openings should be increased.

during a recession, unemployment rate is high and job openings are tight. there is no implied relationship between unemployment and the state of the business cycle.

Answer 1

A standard Beveridge curve tells the relationship between the unemployment rate and the job vacancies which is downward sloping hyperbole implying that higher unemployment is usually a period with low job openings while lower unemployment is associated with the higher job openings. Also, a point on the curve depicts recession when there is high unemployment and tight job openings while expansion is where there is low unemployment and higher job openings. Based on the options given above, D is the correct answer.