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Using the labor market, production function

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3. Why is the aggregate supply curve vertical in the classical model? Show graphically and explain.

4. Using the labor market, production function. and AS/AD graphs of the classical model, show the effects of an increase in the marginal product of labor. What are the effects on real wages, the quantity of labor, real GDP, and prices? Explain and show graphically.

Reference no: EM13877281

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