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If the Price Level Rises by 4 Percent and Workersʹ

Question 89

Multiple Choice

If the price level rises by 4 percent and workersʹ money wage rates increase by 2 percent, then the


A) quantity of labor supplied increases.
B) quantity of labor supplied does not change because there is no change in the real wage rate.
C) quantity of labor supplied decreases.
D) the supply curve of labor shifts rightward.

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