Which of the Following Is True About the Equilibrium Market

question 14

Multiple Choice

Which of the following is true about the equilibrium market wage? A.All workers are satisfied with the wage.

• A)All employers are satisfied with the wage.
• B)There is no unemployment in the market at the equilibrium wage.
• C)Competitive employers have market power with respect to the equilibrium wage.
• D)All workers are satisfied with the wage.

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Definitions:

Price Level

A measure of the average prices of goods and services in an economy at a specific point in time, often tracked to assess inflation or deflation.

Aggregate-Demand Curve

A line depicting the overall demand for every product and service within an economy across different price points.

Exchange Rate

The value of one currency for the purpose of conversion to another, determining the amount of one currency that can be exchanged for a unit of another currency.

Liquidity Preference Theory

A theory suggesting that people prefer to hold their wealth in liquid form for ease of transactions and as a precaution against uncertainty.