In the fooling model's labor market diagram,from an initial intersection point of the labor supply and demand curves,tracing "southwest" down the labor supply 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 contraction fools them.
D) what firms think is happening to real wages if an aggregate demand expansion fools them.
Correct Answer:
Verified
Q14: In the fooling model,what is held constant
Q15: Figure 17-1 Q16: Which of the following assumptions is found Q17: The assumption of imperfect information is critical
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