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Question 25 (10 points) Assume that there is a change in the technology that decreases the cost of recruiting for rms. Using the two-sided search

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Question 25 (10 points) Assume that there is a change in the technology that decreases the cost of recruiting for rms. Using the two-sided search model, what is the effects on the unemployment rate, the vacancy rate, the labour force, aggregate output, and labour market tightness? (Using diagrams, explain your results in Assessment-Assignment- Final Exam). 0 a) Labour market tightness increases, labour force increases, the unemployment rate decreases, the vacancy rate increases, aggregate output increases 0 b) Labour market tightness increases, labour force increases, the unemployment rate decreases, the vacancy rate decreases. aggregate output increases 0 c} Labour market tightness decreases, labour force increases, the unemployment rate decreases, the vacancy rate increases, aggregate output increases 0 d} Labour market tightness decreases, labour force increases, the unemployment rate decreases, the vacancy rate decreases, aggregate output increases 0 e} None of the above

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