A thelabor b demandcurveshiftstotheright ifwagesare c

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Unformatted text preview: mployment stays the same. D) wages decrease to eliminate the surplus. Answer: B Diff: 2 Topic: Explaining the Existence of Unemployment Skill: Analytic AACSB: Analytic Skills 2) Suppose equilibrium wage rate in the labor market is $10 and the demand for labor increases. If wages are sticky, the there will be a A) surplus of labor and the wage rate declines. B) shortage of C) labor and the wage rate increases. shortage of D) labor and the wage rate stays the same. surplus of labor and the wage rate increases. Answer: C Diff: 2 Topic: Explaining the Existence of Unemployment Skill: Analytic AACSB: Analytic Skills 3) Suppose rate in the labor market is $8 and more people entered the labor force, which of the following statements the wage is CORRECT? A) If wages are B) flexible, then wages will increase. If wages are C) sticky, the unemployment rate increases. If wages are D) sticky, the unemployment rate stays the same. If wages are flexible, the unemployment rate increases. Answer: B Diff: 2 Topic: Explaining the Existence of Unemployment Skill: Analytic AACSB: An...
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This note was uploaded on 06/02/2013 for the course ECON 130 taught by Professor Meshew during the Fall '13 term at Victoria Wellington.

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