In the Classical Model, if the quantity of labor demanded at current wages and prices is greater than the quantity of labor supplied
A) unemployment will result.
B) the real wage will increase.
C) the real wage will not change.
D) the real wage will decrease.

Question

Quizplus · Accepted Answer

In the Classical Model, if the demand for labor exceeds the supply, employers will compete for available workers by offering higher wages, leading to an increase in the real wage.

In the Classical Model, If the Quantity of Labor Demanded