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In Equilibrium in the Two-Sided Search Model, Labour Force Participation

Question 38

Multiple Choice

In equilibrium in the two-sided search model, labour force participation is


A) not dependent on market tightness.
B) decreasing with increases in the benefits from searching.
C) the ratio of market tightness to the cost of a vacancy.
D) increasing in market tightness.
E) decreasing in market tightness.

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