The Two-Sided Search Model Is Consistent with Which of the Following

question 37

Multiple Choice

The two-sided search model is consistent with which of the following business cycle facts?

• A)The unemployment rate is countercyclical and the vacancy rate is acyclical.
• B)The unemployment rate is countercyclical and the vacancy rate is countercyclical.
• C)The unemployment rate is countercyclical and the vacancy rate is procyclical.
• D)The unemployment rate is acyclical and the vacancy rate is procyclical.
• E)The unemployment rate is procyclical and the vacancy rate is procyclical.

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Definitions:

Average Total Costs

The total cost of production divided by the quantity of output produced, illustrating the cost per unit of output.

Total Fixed Costs

The total of all expenses that do not change with the amount of production or output.

Marginal Cost Curve

A curve that shows the cost of producing one more unit of a good or service, typically upward sloping because of increasing marginal costs.

Average Variable Cost Curve

A graphical representation of the variable cost per unit at different levels of output.