Refer to the Following Figure When Answering
Figure $\bar { w }$

Refer to the following figure when answering
Figure 7.4: Labor Market
-Consider the labor market depicted in Figure 7.4. Wage, $\bar { w }$ , is called ________ and ________.

A) wage rigidity; reduces unemployment
B) wage rigidity; decreases labor market volatility
C) a flexible wage; increases labor market volatility
D) wage rigidity; increases labor market volatility
E) the market wage; increases unemployment