In the Fooling Model's Labor Market Diagram,from an Initial Intersection

question 130

Multiple Choice

In the fooling model's labor market diagram,from an initial intersection point of the labor supply and demand curves,tracing "northeast" up the labor supply curve shows

• A)what happens to real wages and employment when aggregate demand expands.
• B)what happens to real wages and employment when aggregate demand contracts.
• C)what workers think is happening to real wages if an aggregate demand expansion fools them.
• D)what firms think is happening to real wages if an aggregate demand expansion fools them.

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Definitions:

Hemophilia

A genetic disorder that impedes the blood's ability to clot normally, causing prolonged bleeding from even slight injuries.

Coagulate

The process by which blood turns from a liquid to a gel, forming clots to prevent excessive bleeding.

Red blood cells

The cells in blood responsible for carrying oxygen from the lungs to the rest of the body and returning carbon dioxide to be exhaled.

Hemoglobin

A protein in red blood cells responsible for carrying oxygen from the lungs to the body's tissues and returning carbon dioxide from the tissues back to the lungs.