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

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Chapter1: Making Economics Decisions

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Question

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:

16.
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 and c
are two positive real numbers. The vacancy filling rate in equilibrium is equal to:
A(1-B) - sc
a.
d.
b.
C.
SC
A(1-B)
SC
SC
1-B
e.
[al
SC
SC
2

Definition Definition State in which an individual is without work, despite actively seeking employment opportunities. The unemployment rate refers to the percentage of the workforce that is currently unemployed. Unemployment is one of the key indicators of the conditions prevailing in an economy. It is therefore considered a barometer that points out the condition of an economy.

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