Refer to the Following Figure When Answering
Figure $\bar W$

question 30

Multiple Choice

Refer to the following figure when answering
Figure 15.2: The Labor Market
-In the stylized DSGE model for the labor market displayed in Figure 15.2, the line marked $\bar W$ is due to which of the following?
i. Cyclical unemployment
ii. Sticky prices
iii. Sticky wages

• A) iii
• B) i and ii
• C) ii
• D) i
• E) ii and iii

---

Definitions:

Living Longer

The result of various factors such as genetics, lifestyle choices, and advances in medical care that contribute to an increase in life expectancy.

Self-Control

The ability of an individual to regulate their emotions, thoughts, and behaviors in the face of temptations and impulses.

Sweets

Food items that are rich in sugar and often used as a treat or dessert.

Type D Personality

A personality trait characterized by a tendency towards negative affectivity (worry, irritability, gloom) and social inhibition.