In the Two-Sided Search Model, If the Cost of Posting

question 10

Multiple Choice

In the two-sided search model, if the cost of posting a vacancy rises for firms, then

• A)labour market participation rises, unemployment rises, and vacancies fall.
• B)unemployment falls, vacancies fall, and output falls.
• C)labour market participation falls, unemployment rises, and output falls.
• D)labour market participation rises, vacancies fall, and unemployment rises.
• E)unemployment rises, vacancies rise, and output falls.

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