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    Exam 17: New Classical Macro and New Keynesian Macro
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    If the Labor Supply Curve Is Vertical,an Adverse Supply Shock
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If the Labor Supply Curve Is Vertical,an Adverse Supply Shock

Question 27

Question 27

Multiple Choice

If the labor supply curve is vertical,an adverse supply shock causes ________ in employment and ________ in the real wage.


A) no change,a decrease
B) a decrease,a decrease
C) a decrease,no change
D) a decrease,an increase
E) an increase,an increase

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