Consider the Mortensen-Pissarides model of unemployment. Set unemployment benefits to b=0 and suppose that both wages and recruiting costs are proportional to productivity: w = By and k = cy where ß and c are two positive real numbers. The vacancy filling rate in equilibrium is equal to: a. A(1-B) - sc d. b. C. SC A(1-B) SC SC 1- B e. [al SC 2 ((1-B))² SC

Consider the Mortensen-Pissarides model of unemployment. Set unemployment benefits to b=0 and suppose that both wages and recruiting costs are proportional to productivity: w = By and k = cy where ß and c are two positive real numbers. The vacancy filling rate in equilibrium is equal to: a. A(1-B) - sc d. b. C. SC A(1-B) SC SC 1- B e. [al SC 2 ((1-B))² SC

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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