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4: Consider the on-sided search model of unemployment that we learned in lecture 9.Explain how would an increase in umemployment benefit affect equilibrium reservation wage
4: Consider the on-sided search model of unemployment that we learned in lecture 9.Explain how would an increase in umemployment benefit affect equilibrium reservation wage and umemployment rate. Make sure you plot two figures, one illustrating the determination of the reservation wage and one illustarting the determination of the equilibrium umemployment level. Explain the intuition behind it
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Modern Principles of Economics
Authors: Tyler Cowen, Alex Tabarrok
3rd edition
1429278390, 978-1429278416, 1429278412, 978-1429278393
