= $8; Continuing with the problem, recall that v = G = $2.5, q = 0.5; s(u) = a constant marginal revenue product of labor (MRP) is MRP 100 - 100 * e, where e is the employment rate. = 0.5, and that the Suppose that the government increases the value of unemployment benefits from b = $2 to b = $7. When b = $7, what is the equilibrium unemployment rate? Enter it below Round

= $8; Continuing with the problem, recall that v = G = $2.5, q = 0.5; s(u) = a constant marginal revenue product of labor (MRP) is MRP 100 - 100 * e, where e is the employment rate. = 0.5, and that the Suppose that the government increases the value of unemployment benefits from b = $2 to b = $7. When b = $7, what is the equilibrium unemployment rate? Enter it below Round

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Thank you for the promptly response. My question is why would they demand a higher wage and lengthen their job search when they know their unemployment benefits will run out soon. My intution would be the person would lower their asking wage because they no longer have unemployment benefits and thus their job search would be shortened.
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