Job rationing occurs when the real wage rate is
A) equal to the equilibrium wage rate so there is no excess supply of labor.
B) below the equilibrium wage rate so there is an excess supply of labor.
C) above the equilibrium wage rate so there is a shortage of labor.
D) above the equilibrium wage rate so there is an excess supply of labor.
E) Both answers A and D are correct because whenever the real wage rate is above or below the equilibrium wage rate, there is an excess supply of labor.
Correct Answer:
Verified
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