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Q. Explain the labor market in the cross model?
In cross model, both P and W are exogenous andconstant. Hence real wage is constant and it is not essentially equal to the equilibrium real wage. Model of the labor market in the cross model can be explained by the below figure:
Figure: The labor market in the cross model
Sears rates its salespersons according to their sales ability and their potential for advancement. They sampled 500 salespeople with following data: Potential for Advancement Fair
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