In the Mortensen-Pissarides model of unemployment with constant wage (w = By + (1 − B) b), if labor productivity (y) falls then market tightness.unemploymentFalls; increasesIncreases; decreasesDoesn't change; decreasesIncreases; increasesFalls; decreasesandAccording to the vacancy supply condition, firms keep opening vacancies until thecost of opening a vacant job is ______ the expected sum of profits from a vacancy.equal togreater thannone of the aboveless thangreater than. You selected this answer. In the Mortensen-Pissarides model of unemployment, the following variables areexogenousf, k, y, uB, 0, k, sA, s, f, 0A, s, y, k

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w = By+ (1-3) b), if labor productivity (y) falls then market tightness unemployment Falls; increases Increases; decreases Doesn't change; decreases Increases; increases and

ENGR.ECONOMIC ANALYSIS

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Chapter1: Making Economics Decisions

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Question

In the Mortensen-Pissarides model of unemployment with constant wage (
w = By + (1 − B) b), if labor productivity (y) falls then market tightness.
unemployment
Falls; increases
Increases; decreases
Doesn't change; decreases
Increases; increases
Falls; decreases
and
According to the vacancy supply condition, firms keep opening vacancies until the
cost of opening a vacant job is ______ the expected sum of profits from a vacancy.
equal to
greater than
none of the above
less than
greater than. You selected this answer.

In the Mortensen-Pissarides model of unemployment, the following variables are
exogenous
f, k, y, u
B, 0, k, s
A, s, f, 0
A, s, y, k

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