- +44 141 628 6080
- [email protected]

Sppose that the matching function is given by m emq a

(a) Suppose that the matching function is given by: M = em(Q, A) = eQ^(0.7)A^(0.3) Express pc and pf as functions of e and labor market tightness j.

b) Suppose that z = 1, b = 0.4, e = 0.9 and k = 0.24. Suppose that w = 0.75 Find the unemployment rate in the economy.

(c) Suppose that e falls to 0.8. Suppose that w is unchanged. What happened to the unemployment rate, the labor force participation rate and output?

(d) Suppose that by law the wage is increased (while keeping all the parameters from part (c) unchanged). What is your prediction about the unemployment and participation rate?

Expected delivery within 24 Hours

1958951

Questions

Asked

3,689

Active Tutors

1451697

Questions

Answered

**
Start Excelling in your courses, Ask a tutor for help and get answers for your problems !! **

Â©TutorsGlobe All rights reserved 2022-2023.

## Q : From the items below that will no longer be needed which

from the items below that will no longer be needed which one is most likely to result in the most costs savingsa the