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The standard search model from the lectures has k constant. Suppose instead that firms face higher recruiting costs k when they must sift through large

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The standard search model from the lectures has k constant. Suppose instead that firms face higher recruiting costs k when they must sift through large numbers of applications. which occurs when the labour market is more slack (low 6). If the recruiting cost is now a decreasing function k(9) of market tightness. how does this change the gradients of thejob-creation and wage curves? Does this dampen or amplify the unemployment response to lower y? Explain

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