Figure 7-5

-In Figure 7-5 above,at point C,the real wage is ________ its equilibrium value,leading to changes in the nominal wage that ________.

Name: Figure 7-5 -In Figure 7-5 above,at point C,the real wage is ________ its equilibrium value,leading to changes in the nominal wage that ________.
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Question

Figure 7-5
 
-In Figure 7-5 above,at point C,the real wage is ________ its equilibrium value,leading to changes in the nominal wage that ________.

Quizplus · Accepted Answer

At point C, the real wage is below its equilibrium value, which leads to an increase in nominal wages as firms compete for scarce labor, causing the short-run aggregate supply curve (SAS) to shift upward.

Figure 7-5 -In Figure 7-5 Above,at Point C,the Real Wage Is ________