Suppose the wage rate in the labor market is $15 and the demand for labor decreases. If wages are sticky
A. wages decrease to eliminate the surplus.
B. unemployment decreases.
C. unemployment increases.
D. unemployment stays the same.
Answer: C
You might also like to view...
Over the past several decades, what has been true about inflation in the United States?
A) Inflation has been very stable. B) The nation has experienced persistent deflation. C) Inflation rates have been consistently negative. D) Inflation rates have been consistently positive.
The primary source of revenue for the federal government of the United States are taxes tied to ________
A) property values B) rents and dividends C) export and import flows D) income
Other things being equal, a higher saving rate
A. is associated with a decline in the rate of growth of the population. B. means higher standards of living in the future. C. leads to higher interest rates. D. means higher standards of living today.
If the economy's full-employment output is $6 trillion, actual output is $3.5 trillion, and the budget deficit is $20 billion, the deficit in this case is known as a
A. cyclical deficit. B. structural deficit. C. natural employment deficit. D. debt deficit.