The labor market is said to be in equilibrium when
A) everyone who wants to work is supplying his or her labor.
B) the number of workers is equal to the number of jobs available at a specific wage.
C) firms are unwilling to hire more workers.
D) workers keep their hours constant.
E) the number of available workers is increasing.

Question

Quizplus · Accepted Answer

In an equilibrium labor market, the number of workers is equal to the number of jobs available at a specific wage. This means that there is neither a shortage nor a surplus of labor, and both workers and firms are satisfied with the existing wage rate.

The Labor Market Is Said to Be in Equilibrium When