In the Keynesian model with efficiency wages
A) the full-employment line is determined where the quantity of labor demanded equals the quantity of labor supplied.
B) the full-employment level is determined at the intersection of the labor demand curve and the efficiency wage line.
C) an increase in labor supply increases employment.
D) a decrease in labor supply shifts the FE line to the left.
B
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Fill in the blank(s) with the appropriate word(s).
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A) government securities B) transactions deposits C) loans D) savings deposits