An important feature of the DMP model is that
A) would-be workers care not just about the market wage, but about the chances of finding work.
B) firms can fire workers.
C) workers can choose to shirk on the job.
D) firms maximize revenue.
A
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Refer to the above figure. The figure represents the saving function for the consumer. Point A represents
A) the point at which saving equals zero. B) a situation in which saving is positive. C) a situation in which saving is negative. D) the amount of autonomous consumption.
If the Fed increases the quantity of reserves, a new equilibrium is reached by a
A) leftward shift of the demand for reserves curve. B) movement down the demand for reserves curve. C) movement up the demand for reserves curve. D) rightward shift of the demand for reserves curve. E) None of the above answers is correct.