Author Question: According to real business cycle theory, real wages are _____ correlated with employment and the ... (Read 62 times)

wrbasek0 · **on:** Jun 30, 2018

According to real business cycle theory, real wages are _____ correlated with employment and the portion of the population that is not in the labor market _____ with higher real wages.

a. positively; rises.
b. negatively, does not change.
c. negatively, rises.
d. positively; falls.
e. none of the above.

Question 2

In the classical system, output and employment are primarily dependent on

a. population, productivity, and technology.
b. technology, capital formation, and thrift.
c. population, technology, and capital formation.
d. productivity, thrift, and population.