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If the Price Level Rises by 3 Per Cent and Workers

Question 96

Multiple Choice

If the price level rises by 3 per cent and workers' money wage rates increase by 2 per cent, then the


A) real wage rate increases.
B) quantity of labour demanded does not change because there is no change in the real wage rate.
C) quantity of labour demanded will increase.
D) quantity of labour demanded will decrease.

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