Which of the Following Statements Is Correct

question 43

Multiple Choice

Which of the following statements is correct?

• A)In the new classical view,the money wage is assumed to adjust quickly to clear the labor market whereas in the Keynesian view,the money wage is sticky in a downward direction.
• B)In the new classical view,the money wage is sticky in a downward direction whereas the money wage is assumed to adjust quickly to clear the labor market in the Keynesian view.
• C)In both the new classical and the Keynesian views,the money wage is assumed to adjust quickly to clear the labor market.
• D)In both the new classical and the Keynesian views,the money wage is sticky in a downward direction.

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