What Is the Primary Difference Between Modeling Expansions and Recessions

question 117

Multiple Choice

What is the primary difference between modeling expansions and recessions using the labor market model?

• A) Rigid wages are relevant for modeling recessions but not for modeling expansions.
• B) Rigid wages are relevant for modeling expansions but not for modeling recessions.
• C) Real GDP is relevant for modeling recessions but not for modeling expansions.
• D) Real GDP is relevant for modeling expansions but not for modeling recessions.

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