If a neoclassical model shows increasing wages in the economy over the long run, what else will likely occur?
A. change in government policy to decrease in aggregate demand
B. substantial short-term off-setting decrease in output
C. inflationary increase in price level
D. short-run decrease in cyclical unemployment
Answer:C
If a neoclassical model shows increasing wages in the economy over the long run, what else will likely occur?
A. change in government policy to decrease in aggregate demand B. substantial short-term off-setting decrease in output C. inflationary increase in price level D. short-run decrease in cyclical unemployment
Explanation: Type: Multiple Choice