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Author Question: According to the rational expectation hypothesis, disequilibrium may exist in the labor market because (Read 21 times)

Collmarie

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on: Apr 19, 2019

Question 1

If all firms have rational expectations and wages and prices are flexible, there will be


◦ high unemployment because firms set their wages above the equilibrium wage rate.
◦ a shortage of labor because firms set their wage below the equilibrium wage rate.
◦ no unemployment.
◦ high unemployment because firms know the "true model."

Question 2

According to the rational expectation hypothesis, disequilibrium may exist in the labor market because


◦ of unpredictable shocks.
◦ firms don't know the "true model."
◦ workers don't know the "true model."
◦ of predictable shocks.
Principles of Economics ¦ Case, Fair, Oster ¦ 12th Edition
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Marked as best answer by Collmarie on Apr 19, 2019

raili21

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Reply #1 on: Apr 19, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Collmarie

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Reply #2 on: Apr 19, 2019
TY


raili21

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Reply #3 on: Apr 19, 2019
You're welcome


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