Question 1. COVID-19, Jobkeeper and Unemployment in the Pandemic. Consider the following matchingmodel of the labour market:Please note that u and v are expressed in number, not in percentage.м-Ми(1 —е-0)(1) Matching FunctionS=(1 – u) s(2) Separation FunctionS = M(3) Steady State Equilibrium0= 0.5 +0.01y – c -r- - s + M(4)Equilibrium Market TightnessIn the above equations, e= 2.7183, notation is as in the lecture notes, and in addition, the matching efficiency, theseparation rate, the worker's bargaining power and the income per worker depends on the spread of covid-19 (whichis denoted by covid) and the government policies aimed to support jobs (which is denoted by jobkeeper):M= 0.8 – 0.25 covid,= 0.025 + 0.125 covid – 0.5 jobkeeper,= 0.5,%3Dy100 - 10 covid.%3DUsing the Model in Question 1,Given the values c = 1, and r= 0.05, compute the equilibrium value of v* under the following scenario (using 4decimal places)Scenario 3Let covid = 0.5, and jobkeeper = 0.15Please note that u and v are expressed in number, not in percentage.

The matching model of the labor market assumes that the requirements of workers and firms are…

Using the Model in Question 1, Given the values c = 1, and r= 0.05, compute the equilibrium value of v* under the following scenario (using 4 decimal places) Scenario 3 Let covid=0.5, and jobkeeper = 0.15 Please note that u and v are expressed in number, not in percentage.

Using the Model in Question 1, Given the values c = 1, and r= 0.05, compute the equilibrium value of v* under the following scenario (using 4 decimal places) Scenario 3 Let covid=0.5, and jobkeeper = 0.15 Please note that u and v are expressed in number, not in percentage.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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