This question examines the DMP model of search and unemployment seen in class. Recall that the two equations determining equilibrium in this model are given by: v(Q)=b + e[m(1,1)]a[z b], k em (1, (1-a) (2-6) (1,5) = A Explain what decisions firms in the DMP model make, and how they make them.([5 pts]) B How will a decrease in the benefit b affect the equilibrium market tightness j, the unemploy- ment rate, the vacancy rate and the aggregate output? Explain intuitively. (2.5 pts]) C How will a decrease in the productivity z affect the equilibrium market tightness j, the unemployment rate, the vacancy rate and the aggregate output? Explain intuitively.([2.5 pts]) D How will an increase in the cost of recruting k affect the equilibrium market tightness j, the unemployment rate, the vacancy rate and the aggregate output? Explain intuitively. ([2.5 pts])