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A. Using the one-sided search model, show the effects of an increase in the total factor productivity on the reservation wage and on the long-run

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A. Using the one-sided search model, show the effects of an increase in the total factor productivity on the reservation wage and on the long-run unemployment rate. (1 point) B. Suppose that government makes it more difcult to qualify for the unemployment insurance. Using the one-sided search model, determine the effects of this policy change on the reservation wage and the long-run unemployment rate. (1 point) C. The government of Canada, to reduce the unemployment rate, has announced to give a payment q to the worker who lost their jobs due to COVID-19 pandemic for staying home and not searching for the job. Since anyone who chooses not to search for a job is considered not in the labor force hence lowers the unemployment rate. You as a federal policy economist believe that a better policy to reduce the unemployment rate is that the government should give a subsidy s to any rm that hires a worker. Using the two-sided search model explain that your proposed policy is more effective in achieving the government's goal of reducing the unemployment rate. (2 points)

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