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(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?
Suppose that County A has a money demand function given by Md= 50 + 2Y - 5r, while Country B has a money demand function given by Md = 50 + 2Y -25r. From this, we can conclude that
Illustrate what are the equilibrium wage rate and level of employment. What is the amount of economic rent.
q.define inflation. assume that you live in a simple economy in which only three goods are produced and traded fish
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The number of people employed in a city was 128,000. The adult population was 201, 000 and the labor force participation rate was 67%. Based on the figures listed above, what is (1) the unemployment rate, (2) labor force participation rate, (3) numbe..
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Your diligent effort will allow you to decide how much of your product to provide and allow you to place it on market shortly before your competitor will be able to make its product available for sale. What output level will you choose and what pr..
Illustrate difference between economies of urbanization and economies of localization. Give examples of each.
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