A surplus of labor is eliminated by ------------- in the real wage rate and a shortage of labor is eliminated by ------------- in the real wage rate.
A) an increase; a decrease
B) a decrease; an increase
C) a decrease; a decrease
D) an increase; an increase
E) None of the above answers are correct because shortages and surpluses are eliminated by changes in the demand for labor and the supply of labor, not the wage rate.
Correct Answer:
Verified
Q117: More generous unemployment benefits------------- the opportunity cost
Q118: Q119: The demand for labor curve is Q120: The idea that potential GDP is the Q121: If the real wage rate decreases from Q123: Which of the following can result in Q124: Job rationing occurs when the real wage Q125: The production function graphs the relationship between Q126: The idea that the production function exhibits-------------implies Q127: For a household, the opportunity cost of
A)a horizontal
A)nominal
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