Suppose we wish to examine the determinants of the equilibrium real wage and equilibrium level of employment (N) .In a graph with the real wage on the vertical axis,and the level of employment on the horizontal axis,the price-setting relation will now be
A) a vertical line.
B) a horizontal line.
C) an upward sloping line.
D) a downward sloping line.
E) kinked at the natural rate of unemployment.
Correct Answer:
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