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The Standard Cobweb Model Makes Which Two Assumptions

Question 23

Multiple Choice

The standard cobweb model makes which two assumptions?


A) Workers are forward looking, and job adjustments take time.
B) Workers are myopic, and job adjustments take time.
C) Workers are forward looking, and job adjustments are instantaneous.
D) Workers are myopic, and job adjustments are instantaneous.
E) Workers are myopic, and retraining of one's skills happens instantaneously.

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