The model predicts that in a recession caused by a decrease in technology, A, we would observe:
A) a relatively low real wage.
B) an excess demand for labour.
C) a relatively high real wage.
D) an increase in the MPL
Correct Answer:
Verified
Q12: During an economic expansion due to an
Q13: Intertemporal substitution effects are substitution effects over
Q14: If technology, A, increases permanently then we
Q15: The cyclical part of real GDP is
A)trend
Q16: The model predicts that an economic expansion
Q18: During an economic expansion due to an
Q19: The income effect on labour supply is
Q20: Real GDP equals:
A)trend real GDP plus the
Q21: With a temporary positive change in technology
Q22: A variable that moves in the opposite
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