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The Labour Market in the Diagram Below Begins in Equilibrium

Question 56

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The labour market in the diagram below begins in equilibrium with a real wage of $10 and quantity employed of 1000. The labour market in the diagram below begins in equilibrium with a real wage of $10 and quantity employed of 1000.   FIGURE 30-1 Refer to Figure 30-1.The economy begins with D<sub>0</sub> and S<sub>0</sub>.Suppose there is a positive shock to the economy,which shifts the demand for labour curve to D<sub>2</sub>,and the wage rate rises to $11.The result is A) cyclical unemployment of 200 workers. B) excess supply of labour of 300 workers. C) excess demand for labour of 300 workers. D) excess supply of labour of 200 workers. E) excess demand for labour of 200 workers. FIGURE 30-1 Refer to Figure 30-1.The economy begins with D0 and S0.Suppose there is a positive shock to the economy,which shifts the demand for labour curve to D2,and the wage rate rises to $11.The result is


A) cyclical unemployment of 200 workers.
B) excess supply of labour of 300 workers.
C) excess demand for labour of 300 workers.
D) excess supply of labour of 200 workers.
E) excess demand for labour of 200 workers.

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