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Author Question: New classical macroeconomic theory emphasizes the role of sticky prices in the economy. Indicate ... (Read 102 times)

dollx

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on: Jun 29, 2018
New classical macroeconomic theory emphasizes the role of sticky prices in the economy.
 
  Indicate whether the statement is true or false

Question 2

Explain what would happen if the equilibrium wage in the labor market was below the legislated minimum wage.
 
  What will be an ideal response?


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livaneabi

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Reply #1 on: Jun 29, 2018
Answer to Question 1

FALSE

Answer to Question 2

In this case the likely result will be unemployment. The higher wage will attract new entrants to the labor force (that is quantity supplied of labor will rise) but firms will hire fewer workers (the quantity demanded for labor will drop).


dollx

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Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

atrochim

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Reply 3 on: Yesterday
Excellent

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