Suppose that there is technological change that reduces the costs of recruiting for firms. Using the two-sided
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Suppose that there is technological change that reduces the costs of recruiting for firms. Using the two-sided search model, determine the effects on the unemployment rate, the vacancy rate, the labour force, the number of firms, aggregate output, and labour market tightness. Use diagrams, and explain your results.
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The lower recruiting cost k affects only the demand side of the labour market I...View the full answer
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