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If Labor Supply Decreases,what Will Happen to the Real Wage

Question 14

Multiple Choice

If labor supply decreases,what will happen to the real wage rate,employment,and real output,assuming no change in labor demand?


A) The real wage will increase,employment will decrease,and real output will increase.
B) The real wage will decrease,employment will decrease,and real output will increase.
C) The real wage will increase,employment will decrease,and real output will decrease.
D) The real wage will increase,employment will increase,and real output will increase.
E) The real wage will decrease,employment will increase,and real output will increase.

Correct Answer:

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