An increase in the price level has no effect on labor supply.

Name: An increase in the price level has no effect on labor supply.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

An increase in price level generally results in an increase in wages, which can affect the amount of labor supplied by workers. As the wage rate increases, workers may choose to work more hours, enter the labor force if they were previously not working, or choose to defer retirement. Therefore, an increase in the price level can have an impact on labor supply.

An Increase in the Price Level Has No Effect on Labor