In the Keynesian model, the real wage is mildly procyclical because
A) demand for labor fluctuates with the demand for final goods.
B) firms take advantage of recessions to pay slightly lower wages, since there's excess labor supply.
C) workers' effort may depend on the unemployment rate and the real wage.
D) the supply of labor fluctuates with the business cycle.
C
You might also like to view...
Which function of money enhances the ability of households to accumulate wealth
A) medium of exchange B) store of value C) valuable relative to its weight D) does not become worn out too quickly
The price of an airline ticket from Denver to Chicago costs $300. A bus ticket costs $150. Traveling by plane takes 2 hours compared with 32 hours by bus. Other things constant, an individual would gain by choosing air travel if, and only if, his time were valued at more than Select one:
a. $2 per hour. b. $4.69 per hour. c. $5 per hour. d. $150 per hour.