If the price level rises by 3 percent and workers' money wage rate increase by 1 percent, then the
A) quantity of labor supplied decreases.
B) quantity of labor supplied increases.
C) quantity of labor supplied does not change because there is no change in the real wage rate.
D) real wage rate increases.
A
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Economists determine what consumers can afford using a budget constraint line shown on a line graph where the horizontal axis shows _________________ and the vertical axis shows __________________.
a. the quantity of one good/the quantity of another good b. utils/total utility c. the quantity of available goods/the amount of money the consumer has to spend d. the amount of money the consumer has to spend/total utility
If the quantity of bank reserves held at the Fed increases, ________
A) the real interest rate increases B) bank deposits decrease C) the number of loans issued by banks decrease D) inflation increases
The United Auto Worker (UAW) would best be classified as
A) a craft union. B) an industrial union. C) a guild. D) closed shop union. E) none of the above
Assuming the economy is experiencing a recessionary gap, classical economists predict that:
a. wages will remain fixed. b. lower wages will shift the short-run aggregate supply curve rightward. c. monetary policy should intervene. d. higher wages will shift the short-run aggregate supply curve leftward.