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A recession caused by a decrease in aggregate demand has caused a decrease in the demand for labor as shown in the graph below.
A recession caused by a decrease in aggregate demand has caused a decrease in the demand for labor as shown in the graph below. Assuming wages and prices are sticky, then what is the amount of excess labor as a result of the recession? Provide your answer below: Wage 515 $10 200 500 900 Labor
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Macroeconomics
Authors: Glenn Hubbard, Anthony Patrick O'Brien, Matthew P Rafferty
1st Edition
978-0132109994, 0132109999
