An increase in labor supply increases the equilibrium wage rate and decreases the number of workers hired

How might a real business cycle theorist explain the "Volcker recession" of the early 1980s?

What will be an ideal response?

If inflation is underestimated by decision makers in the economy when it is rising, the SRAS curve will tend to be: a. vertical

b. horizontal. c. downward sloping. d. upward sloping.