In the Keynesian DMP Model,the High Wage Equilibrium

question 35

Multiple Choice

In the Keynesian DMP model,the high wage equilibrium

• A) has lower market tightness than the low wage equilibrium.
• B) has higher market tightness than the low wage equilibrium.
• C) is usually not attainable.
• D) represents an increase in bargaining power for firms.
• E) has the same market tightness as the low wage equilibrium.

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