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The Existence of Union Wages, Efficiency Wages, and the Minimum

Question 139

Multiple Choice

The existence of union wages, efficiency wages, and the minimum wage


A) raises the real wage rate above the equilibrium wage rate and lowers the natural unemployment rate.
B) does not have an impact on the equilibrium wage rate or on the amount of unemployment.
C) raises the real wage rate above the equilibrium wage rate and raises the natural unemployment rate.
D) lowers the real wage rate below the equilibrium wage rate and creates a shortage of labor.
E) raises the real wage rate above the equilibrium wage rate and creates a shortage of labor.

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