LO 6, 7 Suppose that there is technological change that reduces the cost of recruiting for irms.
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LO 6, 7 Suppose that there is technological change that reduces the cost of recruiting for irms. Using the two-sided search model, determine the efects on the unemployment rate, the vacancy rate, the labor force, the number of irms, aggregate output, and labor market tightness. Use diagrams, and explain your results.
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