-Refer to Exhibit 9-1.The economy is currently producing Q₁.An economist who believes wages are flexible in the downward direction would most likely argue that

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An economist who believes in the flexibility of wages downward would argue that in response to unemployment or excess supply in the labor market, wages would decrease. This decrease in wages would lower production costs for businesses, making it more feasible for them to hire more workers and increase production. As a result, the economy would move towards full employment, represented by point A, where there is an equilibrium between supply and demand in the labor market.