With the real wage on the vertical axis and the unemployment rate on the horizontal axis,we know that

Question

Quizplus · Accepted Answer

The relationship between real wage and unemployment rate is typically represented by the WS curve, which shows the quantity of labor supplied by workers and the quantity of labor demanded by firms for a given wage rate. The WS curve is downward sloping, indicating that as the real wage increases, the quantity of labor supplied increases while the quantity demanded by firms decreases, resulting in higher unemployment. Therefore, the correct answer is B, as the WS curve is downward sloping. The PS curve, which represents the equilibrium wage rate and level of employment, is typically upward sloping.

With the Real Wage on the Vertical Axis and the Unemployment