In the Two-Sided Search Model, the Equilibrium Effects of an Increase

Multiple Choice

In the two-sided search model, the equilibrium effects of an increase in productivity are to

A) increase market tightness, decrease unemployment, and increase aggregate output.
B) decrease market tightness, decrease unemployment, and increase aggregate output.
C) decrease market tightness, decrease unemployment, and decrease aggregate output.
D) increase market tightness, increase unemployment, and decrease aggregate output.
E) increase market tightness, increases unemployment, and increases aggregate output.