An increase in matching efficiency,e,could help high unemployment when there is
A) demographic changes.
B) a large degree of mismatch.
C) high labour force participation.
D) an increase in aggregate economic activity.
E) low labour force participation.

Question

Quizplus · Accepted Answer

Matching efficiency refers to the ease and speed with which job seekers can find suitable employment and employers can find suitable employees. A large degree of mismatch in the labor market can result in high unemployment, as there are job openings that go unfilled due to a lack of qualified candidates, while job seekers with certain skills or qualifications may struggle to find employment. Increasing matching efficiency can help to address this problem by better connecting job seekers to available job openings, reducing unemployment.

An Increase in Matching Efficiency,e,could Help High Unemployment When There