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In a Recession in Which Employment Is Below the Equilibrium

Question 51

Multiple Choice

In a recession in which employment is below the equilibrium level, the labor market is characterized by


A) a marginal product of labor that exceeds the opportunity cost of worker's time.
B) unemployment rates below the natural rate.
C) an opportunity cost of worker's time that exceeds the going wage rate.
D) an opportunity cost of worker's time that exceeds the marginal product of labor.
E) none of the above.

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