The RBC Approach Has Workers Allocating Their Labor Effort Over

question 59

Multiple Choice

The RBC approach has workers allocating their labor effort over blocks of time,with periods of intense activity when wages are high alternating with slack periods of vacation and leisure.This makes the labor supply curve rather ________,with unemployment an entirely ________ phenomenon.

• A)steep,voluntary
• B)steep,involuntary
• C)flat,voluntary
• D)flat,involuntary

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Definitions:

Automaticity

The ability to process information with little or no effort.

Encoding

The process of converting information into a form that can be stored in memory, part of how information is processed and retained.

Information-Processing Approach

A perspective in cognitive psychology that examines how humans interpret, store, and retrieve knowledge, paralleling human thought processes to computer operations.

Processing Limitations

Refers to the bounds on the ability of individuals to process information, due to various cognitive or neural constraints.