The Difference Between the Keynesian and Classical Labor Supply Functions

question 14

Multiple Choice

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.

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Definitions:

Ladder Program

A graphical programming language used in programmable logic controllers (PLCs), resembling the schematic diagrams of relay logic.

Output Module

A component in control systems that processes signals from the controller to operate actuators or other output devices.

Internal Output

The result or effect produced within a system, not directly observable or accessible from outside the system.