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Hi, can you please help me with this question? Which of the following statements about the price-setting curve is correct? a. The price-setting curve depicts
Hi, can you please help me with this question?
Which of the following statements about the price-setting curve is correct?
a.
The price-setting curve depicts the firms' profit-maximising price level for different levels of economy-wide employment.
b.
Firms must pay a higher real wage when the employment rate is higher. Therefore, the price-setting curve is upward-sloping.
c.
At points below the price-setting curve, the firms are setting prices too high compared to their profit-maximising level.
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