Author Question: The difference between the Keynesian and classical labor supply functions is that in the Keynesian ... (Read 71 times)

Tazate · **on:** Jun 30, 2018

The difference between the Keynesian and classical labor supply functions is that in the Keynesian version

a. workers know the real wage while in the classical system workers must form an expectation of the price level.
b. workers must form an expectation of the price level while the workers know the real wage in the classical system.
c. workers are assumed to be interested in the money wage while in the classical version workers know the real wage.
d. labor supply depends on the actual real wage while labor supply depends on the expected real wage in the classical system.

Question 2

All of the following methods were used to raise funds to finance the Civil War (18611865) except

(a) An income tax
(b) The printing of paper money
(c) Taxes on prostitution
(d) Taxes on whiskey and beer