Determine the effects of an increase in the separation rate, ?, on the reservation wage and on the long-run unemployment rate in the one-sided search model of unemployment. Explain your results.
Determine the effects of an increase in the separation rate, ?, on the reservation wage and on the long-run unemployment rate in the one-sided search model of unemployment. Explain your results.
Chapter7: Unemployment And Inflation
Section: Chapter Questions
Problem 16E
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Determine the effects of an increase in the separation rate, ?, on the reservation wage and on the long-run
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