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2. Consider the DMP search model of unemployment. Assume that legislators are contemplating about giving a subsidy s to any firm that hires a worker
2. Consider the DMP search model of unemployment. Assume that legislators are contemplating about giving a subsidy s to any firm that hires a worker to reduce the economy's unemployment rate. As a result, the firm's surplus will change to z s w, while the total surplus to z s b. Draw the relevant diagrams and explain whether the policy would be successful
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