In the fooling model's labor market diagram,from an initial intersection point of the labor supply and demand curves,tracing "northwest" up the labor demand curve shows
A) what happens to real wages and employment when aggregate demand expands.
B) what happens to real wages and employment when aggregate demand contracts.
C) what workers think is happening to real wages if an aggregate demand expansion fools them.
D) what firms think is happening to real wages if an aggregate demand contraction fools them.
Correct Answer:
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Q7: In the "fooling" model,it is assumed that
Q8: In the fooling model's AD/SAS/LAS diagram,short-run equilibria
Q9: In the fooling model,suppose that from an
Q10: A principle difference between the new Classical
Q11: The "fooling" model was developed by economist
A)Milton
Q13: In the fooling model's AD/SAS/LAS diagram,short-run equilibria
Q14: In the fooling model,what is held constant
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