How market tightness-wage and total surplus change

Reference no: EM132198943

Question: Suppose that the government decides to give a subsidy s to firm that hires a new worker. What are the equilibrium effects of this in the Diamond-Mortensen-Pessarides (DMP) model? (Determine how market tightness, number of consumers looking for work, aggregate unemployment, aggregate vacancy rate, aggregate income , wage, and total surplus change.)

Reference no: EM132198943

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How market tightness-wage and total surplus change : Suppose that the government decides to give a subsidy s to firm that hires a new worker. What are the equilibrium effects of this in the.

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