In the Two-Sided Search Model, an Increase in Matching Efficiency

question 26

Multiple Choice

In the two-sided search model, an increase in matching efficiency, e, could help high unemployment when there is

• A)demographic changes.
• B)high labour force participation.
• C)a large degree of mismatch.
• D)an increase in aggregate economic activity.
• E)low labour force participation.

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Definitions:

Feet

A unit of linear measurement equal to 12 inches or 0.3048 meters, used primarily in the United States for measuring height or distances.

Yards

A unit of length equal to 3 feet or 0.9144 meters, often used in measuring distances.

Foot

A unit of measurement equal to 12 inches or 0.3048 meters.

Grams

A metric unit of mass equal to one thousandth of a kilogram, commonly used to measure small quantities of substances.