Consider the labor market with frictions

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Consider the labor market with frictions as in Diamond-Mortensen-Pissarides (Chapter 6). A fall productivity in that model leads to

Lower real wages, lower unemployment, and lower labor force participation

Lower real wages, lower unemployment, and higher labor force participation

Lower real wages, higher unemployment, and lower labor force participation

Lower real wages, lower unemployment, and higher labor force participation

Which of the following is not considered “shadow banking”?

Private equity firms that arrange funding for select projects

Hedge funds that leverage (borrow money) for high-risk investment projects and derivatives by pooling together the resources of many savers

Insurance companies that pool together the risk of many premium-holders in order provide a low-cost product through diversification

Mutual funds that leverage (borrow money) for investment projects in securities and other lower-risk projects by pooling together the resources of many savers.

Reference no: EM131391782

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