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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

Macroeconomics: Private and Public Choice (MindTap Course List)
Macroeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter8: Economic Fluctuations, Unemployment, And Inflation
Section: Chapter Questions
Problem 5CQ
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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
Transcribed Image Text: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
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