According to advocates of passive policy, what variable naturally adjusts in the labor market, shifting the short-run
Question:
According to advocates of passive policy, what variable naturally adjusts in the labor market, shifting the short-run aggregate supply curve to restore unemployment to the natural rate? Why does the active policy approach assume that the short-run aggregate supply curve shifts leftward more easily and quickly than it shifts rightward?
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The real wage rate is the variable that adjusts to bring equilibrium in the labor market and to sh...View the full answer
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Related Book For 
Economics A Contemporary Introduction
ISBN: 9781305505469
11th Edition
Authors: William A. McEachern
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