In equilibrium in the two-sided search model, aggregate output is given by
A) $Y = \operatorname { Qem } ( 1 , j )$.
B) $Y = z F ( Q , N )$.
C) $Y = z \frac { Q } { A }$.
D) $Y = \operatorname { Qem } ( Q , A )$.
E) $Y = \operatorname { Qem } ( j , 1 )$.

Question

Quizplus · Accepted Answer

In equilibrium in the two-sided search model, aggregate output is given by $Y = \operatorname { Qem } ( 1 , j )$. This is because the equilibrium matching function $m(Q,j)$ is a function of the number of buyers, $Q$, and the number of sellers, $j$. The aggregate output is then given by the product of the equilibrium matching function and the per-match output, $Qem(1,j)$.

In Equilibrium in the Two-Sided Search Model, Aggregate Output Is Y=Qem⁡(1,j)Y = \operatorname { Qem } ( 1 , j )Y=Qem(1,j)

In Equilibrium in the Two-Sided Search Model, Aggregate Output Is $Y = \operatorname { Qem } ( 1 , j )$