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Based on the Predictions of the Two-Sided Search Model, the Beveridge

Question 21

Multiple Choice

Based on the predictions of the two-sided search model, the Beveridge curve


A) could be explained by changes to Employment Insurance, but this is not plausible in reality.
B) could be explained by changes to Employment Insurance that are plausible in reality.
C) is a feature the model fails to explain.
D) is plausible in reality but is not consistent with the model.
E) is neither plausible in reality or consistent with the model.

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