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

Question 3

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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