Why is a rightward shift of the labor supply curve difficult to rationalize in the classical model?
a. The labor supply curve is based on firms' preferences.
b. Labor supply is very difficult to measure.
c. The labor supply curve is almost never a known entity.
d. Workers' preferences and therefore labor supply tend to change very slowly.
e. Workers' preferences and therefore labor supply tend to change very quickly.
D
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________ emphasize(s) that changing productivity and technology are the main reasons behind fluctuations in the economy
A) The real business cycle theory B) Keynesian theory C) Ricardian theory D) Monetary theories
A country wishing to establish a currency basket peg usually
A) chooses a small number of trading partner's currencies for that basket. B) chooses all of its trading partner's to be members of the basket. C) chooses six trading partners for inclusion. D) chooses only the most stable reserve currencies for inclusion.
How much is it?
Which of the following schools of thought reject the simple fixed-price model in favor of a model in which the aggregate supply curve is relatively flat at low levels of real GDP and slopes upward as real GDP approaches its potential level?
a. The new Keynesian b. The monetarist c. The traditional classical d. The new classical e. The Marxist