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If Wage Rates Are Set in Long-Term Contracts and Suddenly

Question 141

Multiple Choice

If wage rates are set in long-term contracts and suddenly the demand for labour decreases,then


A) the quantity demanded is more than the quantity supplied.
B) the equilibrium wage rises to equate demand and supply.
C) there is no change.
D) the quantity demanded is less than the quantity supplied.
E) there is a shortage of labour.

Correct Answer:

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