In the Two-Sided Search Model, an Increase in Productivity Causes

question 41

Multiple Choice

In the two-sided search model, an increase in productivity causes

• A) the vacancy rate and the unemployment rate to fall.
• B) output to fall and the vacancy rate to fall.
• C) labour market tightness to fall and output to fall.
• D) labour market tightness to rise and output to fall.
• E) the vacancy rate to rise and the unemployment rate to fall.

---

Definitions:

Adverse Impact

A concept in employment law referring to employment practices that appear neutral but have a discriminatory effect on a protected group.

Disparate Treatment

A form of discrimination in which individuals are treated differently based on prohibited factors such as race, age, or gender.

Protected Group

Individuals who are legally protected from discrimination based on characteristics such as race, gender, age, religion, and disability.

Civil Rights Act Of 1991

Legislation in the United States that aimed to strengthen civil rights laws, including providing the right to trial by jury on discrimination claims and introducing the possibility of emotional distress damages and limited punitive damages.