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In the Classical Model,an Increasing Demand for Labor Will

Question 61

Multiple Choice

In the classical model,an increasing demand for labor will


A) cause an expansion with higher employment and a higher real wage.
B) cause a shortage of labor because the labor market always clears.
C) cause a recession with lower employment and a lower real wage.
D) cause a recession because wages are fixed in the short run.
E) cause an expansion with lower employment and a higher real wage.

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