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In a labour market model, we shall assume that the economy is always on the wage-setting curve and only on the price-setting surve in the medium- run equilibrium. How would this model react to a demand shock as opposed to having the economy always on the price- setting curve and only the wage-setting curve in the medium run equilibrium?
This document contains various important questions and their appropriate answers in the subject field of Economics.
Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.
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