Which of the Following Is an Important Assumption About the Labor

question 101

Multiple Choice

Which of the following is an important assumption about the labor market that is shared by both the original Keynesian model and the Friedman "Fooling Model?"

• A) the supply of labor depends on expected real wages
• B) the demand for labor is a function of nominal wages
• C) workers can be "off" their labor supply function in the short-run equilibrium
• D) firms can be "off" their labor demand function in the short-run equilibrium

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Definitions:

Age in Place

The ability to live in one's own home and community safely, independently, and comfortably, regardless of age, income, or ability level.

Self-Employed

An employment status where an individual works for themselves instead of an employer, often running their own business.

Full Time

Typically refers to employment or activities that require a standard number of hours per week, often considered to be around 35 to 40 hours.

Planned Retirement Community

A residential community designed with services and amenities to cater to the needs and activities of retired individuals, promoting a certain lifestyle.