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Suppose that following an increase in taxes that only targets online companies, employment-related search engine companies decide to increase the job posting cost. Using the
Suppose that following an increase in taxes that only targets online companies, employment-related search engine companies decide to increase the job posting cost. Using the two-sided search model, show the effects of an increase in the job posting cost on the unemployment rate, the vacancy rate, the labor market tightness, the labor force and aggregate output. Detail fully (use graphs, math and comments)
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