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.

Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter19: Earnings And Discrimination
Section: Chapter Questions
Problem 3PA
icon
Related questions
Question

I also need help with the second question

In the Mortensen-Pissarides model of unemployment with constant wage (
w By+ (1-3) b), if labor productivity (y) falls then market tightness___________ and
unemployment ________
Falls; increases
Increases; decreases.
O Doesn't change; decreases
Increases; increases
Falls: decreases
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.
O equal to
greater than
Onone of the above
less than
greater than. You selected this answer.
Transcribed Image Text:In the Mortensen-Pissarides model of unemployment with constant wage ( w By+ (1-3) b), if labor productivity (y) falls then market tightness___________ and unemployment ________ Falls; increases Increases; decreases. O Doesn't change; decreases Increases; increases Falls: decreases 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. O equal to greater than Onone of the above less than greater than. You selected this answer.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Elasticity of demand
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Microeconomics
Principles of Microeconomics
Economics
ISBN:
9781305156050
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning