A sharp increase in stock prices makes people much wealthier. If the main effect of this increased wealth is felt on labor supply, what happens to current employment and the real wage rate?
A) Both employment and the real wage rate would increase.
B) Both employment and the real wage rate would decrease.
C) Employment would increase and the real wage would decrease.
D) Employment would decrease and the real wage would increase.
D
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Members of which European Union institution are popularly elected?
What will be an ideal response?
A majority of federal revenue once came from tariffs
a. True b. False
Which of the following is not an incentive bureaucrats have to increase the size of their budgets?
a. They can increase their income by having a higher budget. b. Increased budgets mean more power and prestige. c. Higher budgets are necessary to maximize scale efficiencies. d. A nice working environment is positively correlated with a higher budget.
In the 1990s, Fed Chairperson Alan Greenspan questioned whether the stock market
a. boom at that time reflected "irrational exuberance.". b. decline at that time reflected "irrational funk.". c. boom at that time reflected "rational exuberance.". d. decline at that time reflected "rational funk.".