How does a real wage above the equilibrium wage cause unemployment?
What will be an ideal response?
If the real wage is above equilibrium, the quantity of labor demanded is less than the quantity of labor supplied. The resulting surplus of labor represents unemployed workers.
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The money demand curve will shift to the left if:
A. the price level decreases. B. the nominal interest rate decreases. C. the nominal interest rate increases. D. the price level increases.
A diversified portfolio only makes sense for large institutional investors, not for small investors.
Answer the following statement true (T) or false (F)
The marginal physical product of labor is equal to
A. Total output divided by the quantity of labor. B. The percentage change in total output divided by the percentage change in quantity of labor. C. The change in total revenue associated with one additional unit of input. D. The change in total output associated with one additional unit of labor.
Brad details cars and Angelina babysits. Angelina agrees to babysit for Brad's kids if he details her minivan. This is an example of
A. legal tender. B. commodity money. C. barter. D. fiat money.