If the real wage is above the equilibrium real wage,there would be a ________ of workers and the real wage would ________.

Question

Quizplus · Accepted Answer

If the real wage is above the equilibrium real wage, it means that the wage rate is higher than what the market is willing to pay. This will result in a surplus of workers, as more people will be willing to work at the higher wage rate than the amount of jobs available at that wage rate. As a result, employers may reduce wages to attract workers, causing the real wage to decline.

If the Real Wage Is Above the Equilibrium Real Wage,there