Refer to the following figure when answering the following questions.
Figure 7.4: Labor Market 
-Consider the labor market depicted in Figure 7.4. If the market wage is fixed at 
, it is called ________ and it ________ unemployment.
A) a wage ceiling; does nothing to
B) a wage rigidity; increases
C) the market wage; does nothing to
D) the market wage; increases
E) a wage rigidity; decreases
Correct Answer:
Verified
Q52: The gradual rise in unemployment in the
Q53: The rise in the employment-population ratio between
Q54: If the minimum wage is set above
Q55: The natural rate of unemployment is the
Q56: One consequence of wage rigidity is:
A) lower
Q58: Wage rigidity:
A) helps the labor market achieve
Q59: The natural rate of unemployment is decomposed
Q60: Conventional wisdom is that most of the
Q61: The idea that you value receiving $1,000
Q62: The percentage of total hours worked by
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