Question: 2. Suppose that there is a technological change that reduces the cost of recruiting for firms. Using the two-sided search model, determine the effects

2. Suppose that there is a technological change that reduces the cost of recruiting for firms. Using the two-sided search model, determine the effects of this on the unemployment rate, the vacancy rate, the labor force, the number of firms and labor market tightness. Use diagrams while doing your analysis.

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