According to the Two-Sided Search Model, in Equilibrium Labour Market

Multiple Choice

According to the two-sided search model, in equilibrium labour market tightness tends to be high when

A) the cost of a vacancy is high relative to the firm's share of the surplus.
B) employment insurance benefits are high relative to the productivity of a match.
C) profits are close to zero.
D) the firm's share of the surplus is high relative to the cost of a vacancy.
E) the firm's share of the surplus is increasing in market tightness.