In the Keynesian model, the real wage is mildly procyclical because
A. the supply of labor fluctuates with the business cycle.
B. firms take advantage of recessions to pay slightly lower wages, since there's excess labor supply.
C. demand for labor fluctuates with the demand for final goods.
D. workers' effort may depend on the unemployment rate and the real wage.
Answer: D
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The term "derived demand" refers to
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A. low; low B. high; low C. low; high D. high; high