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Refer to the Information Provided in Figure 13

Question 152

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Refer to the information provided in Figure 13.4 below to answer the questions that follow. Refer to the information provided in Figure 13.4 below to answer the questions that follow. Figure 13.4 -Refer to Figure 13.4. The demand for labor falls from D to D'. If firms enter into social, or implicit, contracts with workers not to cut wages, then the wage rate will remain at $10 and A) employment will fall to 150 million. B) employment will fall to 200 million. C) employment will remain at 300 million. D) labor supply will decrease to restore the market to equilibrium. Figure 13.4
-Refer to Figure 13.4. The demand for labor falls from D to D'. If firms enter into social, or implicit, contracts with workers not to cut wages, then the wage rate will remain at $10 and


A) employment will fall to 150 million.
B) employment will fall to 200 million.
C) employment will remain at 300 million.
D) labor supply will decrease to restore the market to equilibrium.

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