The labor market equilibrium determines the market clearing the ________ and ________.
A) real wage; labor used in production
B) nominal wage; the real wage
C) level of unemployment; the long-run nominal wage
D) marginal product of labor; the supply of labor
E) real wage; the marginal product of labor

Question

Quizplus · Accepted Answer

The labor market equilibrium determines the market clearing real wage and the amount of labor used in production. This equilibrium is reached when the supply of labor equals the demand for labor, setting the real wage and employment level.

The Labor Market Equilibrium Determines the Market Clearing the ________