In the Keynesian model,the real wage is mildly procyclical because
A)demand for labor fluctuates with the demand for final goods.
B)firms take advantage of recessions to pay slightly lower wages, since there's excess labor supply.
C)workers' effort may depend on the unemployment rate and the real wage.
D)the supply of labor fluctuates with the business cycle.

Question

Quizplus · Accepted Answer

The Answer of In the Keynesian model,the real wage is mildly procyclical because
A)demand for labor fluctuates with the demand for final goods.
B)firms take advantage of recessions to pay slightly lower wages, since there's excess labor supply.
C)workers' effort may depend on the unemployment rate and the real wage.
D)the supply of labor fluctuates with the business cycle.

In the Keynesian Model,the Real Wage Is Mildly Procyclical Because