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Explain clearly QUESTION 3: Consider the search model of unemployment (Using the equations describing equilibrium), explain how each of the following events affects changes in

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Explain clearly

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QUESTION 3: Consider the search model of unemployment (Using the equations describing equilibrium), explain how each of the following events affects changes in wages, vacancies ratio and unemployment rate. a) A decrease in the separation rate, by An increase in aggregate productivity. J An increase in the real interest rate. d) An improvement in the matching efficiency

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