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Suppose the Full-Employment Equilibrium Wage Rate Is $11 Per Hour

Question 139

Multiple Choice

Suppose the full-employment equilibrium wage rate is $11 per hour while the real wage rate is $12 per hour.As a result,


A) job rationing will occur.
B) job search will decline.
C) a positive Okun gap will occur.
D) the production function will shift downward.
E) job rationing will decrease.

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