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Suppose the Wage Rate in the Labor Market Is $8

Question 42

Multiple Choice

Suppose the wage rate in the labor market is $8 and more people entered the labor force,which of the following statements is CORRECT?


A) If wages are flexible,then wages will increase.
B) If wages are sticky,the unemployment rate increases.
C) If wages are sticky,the unemployment rate stays the same.
D) If wages are flexible,the unemployment rate increases.

Correct Answer:

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