Multiple Choice
In the two-sided search model, if aggregate output output increases, vacancies rise, unemployment falls, and the labour force increases, this could be caused by
A) a decrease in matching efficiency.
B) an increase in employment insurance benefits.
C) an increase the cost of posting a vacancy.
D) a decline in aggregate productivity.
E) an increase in matching efficiency.
Correct Answer:

Verified
Correct Answer:
Verified
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