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

question 12

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. The natural rate of unemployment

• A) iii
• B) i and ii
• C) i
• D) ii
• E) None of these answers are correct.

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