
-Referring to the graph above,assume that,at first,the labor market is in equilibrium at point 4.Then,demand shifts to pass through point 3,and the real wage adjusts to the new equilibrium.________ is ________ at the new equilibrium,compared to the original equilibrium.
A) unemployment;larger
B) unemployment;smaller
C) the labor force;smaller
D) employment;larger
Correct Answer:
Verified
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