Figure 17-1 -In the Friedman "Fooling Model" If P(e)is Less Than P

Multiple Choice

Figure 17-1

-In the Friedman "Fooling Model" if P(e) is less than P then the labor supply curve in Figure 17-1 above

A) shifts leftward when workers realize their error.
B) always shifts rightward.
C) initially remains the same.
D) Both A and C are correct.