If the perceive real wage goes up, workers will supply more labour:
A)unless the actual real wage remains the same or falls.
B)in the long run.
C)in the short run.
D)all of the above.

Question

Quizplus · Accepted Answer

The question is asking about the response of workers to an increase in perceived real wage, which refers to the wage rate in relation to the general level of prices. In the short run, workers are likely to respond to an increase in perceived real wage by supplying more labor, as they will perceive it as a higher reward for their effort. However, in the long run, the actual real wage (adjusted for inflation) may not have increased, or may have even fallen, reducing workers' willingness to supply labor. Therefore, option C is the most accurate answer.

If the Perceive Real Wage Goes Up, Workers Will Supply