Multiple Choice
Refer to the following figure when answering the following questions.
Figure 15.2: The Labor Market
-In the stylized DSGE model for the labor market displayed in Figure 15.2, the line marked is due to which of the following?
i. Cyclical unemployment
ii. Sticky prices
iii. The natural rate of unemployment
A) iii
B) i and ii
C) i
D) ii
E) None of these answers is correct.
Correct Answer:

Verified
Correct Answer:
Verified
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