The difference between the Keynesian and classical labor supply functions is that in the Keynesian version
a. workers know the real wage while in the classical system workers must form an expectation of the price level.
b. workers must form an expectation of the price level while the workers know the real wage in the classical system.
c. workers are assumed to be interested in the money wage while in the classical version workers know the real wage.
d. labor supply depends on the actual real wage while labor supply depends on the expected real wage in the classical system.
B
You might also like to view...
In a repeated prisoner's dilemma, players:
A. always play their dominant strategy. B. never learn to play their dominant strategies. C. can sustain cooperation by playing their dominant strategy. D. can sustain cooperation by employing a tit-for-tat strategy.
Which British colony in North America was the last to be founded, and was designed to assist those who owed debts in the Old World?
a. Georgia b. Rhode Island c. Florida d. Pennsylvania.
An increase in income tax rates will
What will be an ideal response?
If a market is in equilibrium, then
a. demand curves and supply curves are the same b. at the equilibrium price, quantity demanded is equal to quantity supplied c. the short-run quantities of supply and demand equal the long-run quantities of supply and demand d. the short-run equilibrium price equals the long-run equilibrium price e. all demanders receive the goods they want, and all suppliers sell the goods they want