Answer to Question #316361 in Macroeconomics for shefa

Question

The internet has allowed for an improvement in the dissemination of

information, including in the labour market. In the context of a model with

matching frictions, we can interpret this as an increase in the matching efficiency, A.

If that is the case, what would the model predict? In answering this question, use a

model with matching frictions

Answer 1

The technological revolution has reached around the world, with important consequences for business, government, and the labor market. Computer-aided design, telecommunications, and other developments are allowing small players to compete with traditional giants in manufacturing and other fields. In this volume, 16 engineering and industrial experts representing eight countries discuss the growth of technological advances and their impact on specific industries and regions of the world. From various perspectives, these distinguished commentators describe the practical aspects of technology's reach into business and trade.

National Academies of Sciences, Engineering, and Medicine. 1988. Globalization of Technology: International Perspectives. Washington, DC: The National Academies Press.