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What is the primary difference between modeling expansions and recessions using the labor market model?

viva902

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What is the primary difference between modeling expansions and recessions using the labor market model?

What is the primary difference between modeling expansions and recessions using the labor market model?

▸ Rigid wages are relevant for modeling expansions but not for modeling recessions.

▸ Real GDP is relevant for modeling expansions but not for modeling recessions.

▸ Real GDP is relevant for modeling recessions but not for modeling expansions.

▸ Rigid wages are relevant for modeling recessions but not for modeling expansions.

Textbook

Macroeconomics

Macroeconomics

Edition: 3^rd

Authors: Acemoglu, Laibson, List

Read 42 times

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Deeclaire

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viva902 Author

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Helped a lot

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I appreciate what you did here, answered it right Smiling Face with Open Mouth

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