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Discuss how incorporating a participation decision into a standard New Keynesian model with matching frictions show that market tightness becomes endogenously more volatile because both

Discuss how incorporating a participation decision into a standard New Keynesian model with matching frictions show that market tightness becomes endogenously more volatile because both the opportunity cost of home production and the reservation wage vary with participation. Your answer should rely heavily from the text Campoli and Katz

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