Suppose there is an increase in total factor productivity, which implies that all firms offer higher wages.

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Suppose there is an increase in total factor productivity, which implies that all firms offer higher wages. In the one-sided search model of unemployment, determine the effects of this on the reservation wage and on the long-run unemployment rate. Explain your results.

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Macroeconomics

ISBN: 978-0133847147

5th Canadian edition

Authors: Stephen d. Williamson

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