Which of the following assumptions is found in Friedman's model but not in the new classical model?
A) Supply of labor depends on expected real wage.
B) Workers gradually adapt their expectations of the price level to the actual price level.
C) imperfect information
D) market-clearing labor market
B
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In the 2007-2009 period, the expenditure level in the United States intersected the 45-degree line below potential GDP, causing
a. hyperinflation. b. a growing trade deficit. c. a government budget surplus. d. unemployment.
Economists measure a market's domination by a small number of firms with a statistic called the
A key tenet of the supply-side economic theory of the 1980s was that government tax cuts would increase after-tax wages, stimulating the incentive to seek higher wages through increased labor supply
Indicate whether the statement is true or false
The demand schedule or curve confronted by the individual, purely competitive firm is:
A. relatively elastic, that is, the elasticity coefficient is greater than unity. B. perfectly elastic. C. relatively inelastic, that is, the elasticity coefficient is less than unity. D. perfectly inelastic.