Which market determines the real wage and employment?
A)the goods market
B)the money market
C)the labour market
D)the capital market

Question

Quizplus · Accepted Answer

The labour market determines the real wage and employment as it is where individuals supply their labour and firms demand labour. The equilibrium wage rate and employment level are determined by the interaction of the supply and demand for labour in this market. The goods market, money market, and capital market do not directly determine the real wage and employment levels.

Which Market Determines the Real Wage and Employment