According to the DMP model,in equilibrium labour market tightness tends to be high when
A) the cost of a vacancy is high relative to the firm's share of the surplus.
B) employment insurance benefits are high relative to the productivity of a match.
C) profits are close to zero.
D) the firm's share of the surplus is high relative to the cost of a vacancy.
E) the firm's share of the surplus is increasing in market tightness.
Correct Answer:
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Q21: According to the DMP model,in equilibrium the
Q22: In equilibrium,an increase in Employment Insurance benefits
A)
Q23: In the DMP model,the equilibrium effects of
Q24: Constant returns to scale in the matching
Q25: The probability of finding a job is
A)
Q27: In the DMP model,an increase in productivity
A)
Q28: The matching function captures the difficulties in
A)
Q29: In equilibrium,an decrease in matching efficiency
A) increases
Q30: In the DMP model,firms continue posting vacancies
Q31: Changes in matching efficiency are particulariliy important
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