Refer to the information provided in Figure 28.4 below to answer the question(s) that follow.
Figure 28.4Refer to Figure 28.4. The demand for labor rises from D' to D. If firms had entered into explicit contracts with workers that set wages for 3 years, then the wage rate will ________ and employment will ________.
A. remain at $10; fall to 200 million
B. remain at $8; rise to 400 million
C. rise to $10; remain at 200 million
D. rise to $10; rise to 300 million
Answer: B
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Answer the following statement true (T) or false (F)