According to Gordon which of the following statements about Friedman's fooling model is accurate?
A) the demand for labor depends on the nominal wage
B) as prices increase, firms will offer higher real wages; these higher wages will bring forth an increase in the supply curve of labor
C) the supply curve of labor depends on the expected real wage
D) All of the above statements are accurate.

Question

Quizplus · Accepted Answer

The demand for labor depends on the nominal wage, as prices increase, firms will offer higher real wages; these higher wages will bring forth an increase in the supply curve of labor, and the supply curve of labor depends on the expected real wage.

According to Gordon Which of the Following Statements About Friedman's