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Lecture 7 13 - 3 When rate of job finding increases u...

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Simple Dynamic Model of Unemployment Implications: 1. When birth rate increases, u* increases 2. When rate of job separations increases, u* increases.
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Unformatted text preview: 3. When rate of job finding increases, u* decreases. f s b s b u + + + = * Let us look at these in turn....
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