Consider the Following Two Equations to Describe Labor Markets in Various

question 35

Multiple Choice

Consider the following two equations to describe labor markets in various sectors of the economy Nd = β0 + β1 + u
Ns = γ0 + γ1 + v
Nd = Ns = N

• A)W/P is exogenous,n is endogenous
• B)Both n and W/P are endogenous
• C)n is exogenous,W/P is endogenous
• D)the parameters cannot be estimated because it would require two equations to be estimated at the same time (simultaneously)