Question: Suppose that there is technological change that reduces the cost of recruiting for firms. Using the DMP model, determine the effects on the unemployment rate,

Suppose that there is technological change that reduces the cost of recruiting for firms. Using the DMP model, determine the effects on the unemployment rate, the vacancy rate, the labor force, the number of firms, aggregate output, and labor market tightness. Use diagrams, and explain your results.

Step by Step Solution

★★★★★

3.58 Rating (165 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The lower recruiting cost k affects only the demand side of the labor market In ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

362-B-E-M-E (2572).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

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...

Suppose that there is a permanent increase in total factor productivity. Determine the implications of this for current macroeconomic variables, and show how the impact differs from the case where...

Suppose that there is an increase in national income in a country. Under a fixed exchange rate system, according to the monetary approach, will the countrys balance of payments (official reserve...

Suppose that there is technological change that reduces the cost of recruiting for firms. Using the two-sided search model, deter-mine the effects on the unemployment rate, the vacancy rate, the...

Create three takeaways from your overall internship experience. What lessons have you learned that you will apply to your future? Share two of your favorite memories from your internship? Take one...

This question examines the search and unemployment model. 1. Draw and carefully label the two graphs depicting the equilibrium in the model. 2. Suppose there is a technological change that reduces...

6. LO 6, 7 Suppose that there is technological change that reduces the cost of recruiting for irms. Using the two-sided search model, determine the efects on the unemployment rate, the vacancy rate,...

LO 6, 7 Suppose that there is technological change that reduces the cost of recruiting for irms. Using the two-sided search model, determine the efects on the unemployment rate, the vacancy rate, the...

Suppose that there is a technological change that reduces the cost of recruiting for firms (in other words, the cost of posting vacancies falls). Using the search model to determine the effects on...

( 2 0 points ) Suppose that there is a technological change that reduces the cost of recruiting for firms ( in other words, the cost of posting vacancies falls ) . Using the two sided search model we...

Using the information from BE14- 11, determine the issue price of the bonds, assuming that the market rate of interest is 6%, and prepare the journal entry to record the bond issue using a premium or...

Consider the relationship between ethics and feelings. Identify an ethical issue that you encountered in a business setting and discuss this in terms of how the scenario impacted you emotionally and...

Which of the following is false? a . Intangible assets are non - current assets that do not have physical substance. b . Obligations expected to be paid after one year are classified as long - term...

LO.2 Many years ago, Jack purchased 400 shares of Canary stock. During the current year, the stock became worthless. It was determined that the company went under because several corporate officers...

In the two-sided search model, what are the effects of a decrease in matching efficiency?

What explains the observed Beveridge relation from 2000 to 2012?

What is the difference between exogenous growth and endogenous growth?

Make the financial ratios analysis of MyDeco Corporation Financial Statements & Stock Price: MyDeco Corp. (66.7) (All data as of fiscal year end; in $ million) 2009 2010 2011 2012 2013 404.3 363.8...

written work please not excel Question 13 (14 points) Best Ever Results Inc. has a project under consideration with the following estimated cash flows: An initial investment of $420,000. A return of...

Ross White's machine shop uses 2,500 brackets during the course of a year, and this usage is relatively constant throughtout the year. These brackets are purchased from a supplier 100 miles away for...