The quantity of labor supplied depends on the

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The real wage rate, which is the money wage rate adjusted for inflation, has a direct correlation with the quantity of labor supplied. As the real wage rate increases, workers are incentivized to supply more labor as they can earn a higher income. Conversely, as the real wage rate decreases, workers are less incentivized to supply labor as they are earning less income. The price of output and level of profits may indirectly affect the labor market through demand for goods and services and therefore employment opportunities, but they do not determine the quantity of labor supplied. The money wage rate is important for understanding the cost of labor and worker compensation, but it does not directly determine the quantity of labor supplied.

The Quantity of Labor Supplied Depends on the