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If It Is Less Costly for Business Firms to Adjust

Question 112

Multiple Choice

If it is less costly for business firms to adjust the labor demanded as the price level changes than it is for households to adjust Ns,then in the short-run


A) Ns has a positive slope and the demand for labor (Nd) negative slope.
B) Nd has a negative slope and the supply of labor (Ns) a positive slope.
C) AD has a negative slope.
D) SAS has a positive slope.

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