Multiple Choice
In the two-sided search model, an increase in productivity causes
A) labour market tightness to fall and output to fall.
B) labour market tightness to rise and output to fall.
C) the vacancy rate to rise and the unemployment rate to fall.
D) output to fall and the vacancy rate to fall.
E) the vacancy rate and the unemployment rate to fall.
Correct Answer:
Verified
Correct Answer:
Verified
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