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7. Following an increase in the separation rate, the Beveridge curve Shifts upward Can shift up or down depending on paramete
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A Beveridge curve is a graphical representation of the relationship between unemployment and the job vacancy rate.

The Beveridge curve is characterized by 3 parameters.

(1) The match efficiency (m) and the separation rate determine the intercept.

(2) the match elasticity determines its curvature.

An increase in the separation rate shifts the Beveridge curve up.

Following an increase in the separation rate, the Beveridge curve shifts upward.

Answer: Option (A)

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