Consider a non-classical economy where there are sticky wages in the labor market. When there is a negative shock to labor demand, the unemployment rate increases and the wage rate stays the same. the unemployment rate increases and the wage rate decreases. the unemployment rate does not change and the wage rate decreases. O the unemployment rate does not change and the wage rate stays the same.

Consider a non-classical economy where there are sticky wages in the labor market. When there is a negative shock to labor demand, the unemployment rate increases and the wage rate stays the same. the unemployment rate increases and the wage rate decreases. the unemployment rate does not change and the wage rate decreases. O the unemployment rate does not change and the wage rate stays the same.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter21: Unemployment

Section: Chapter Questions

Problem 6SCQ: Is the increase in labor force participation rates among women better thought of as causing an...

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