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    Exam 14: The Labor Market in the Macroeconomy
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    Assume That Wages Are Sticky in a Downward Direction
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Assume That Wages Are Sticky in a Downward Direction

Question 83

Question 83

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Assume that wages are sticky in a downward direction. Show with the use of a graph what will happen when there is a decrease in labor demand.

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If wages "stick" at W instead...

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