If the Real Wage Rate Is Such That the Quantity

question 417

Multiple Choice

If the real wage rate is such that the quantity of labor supplied by workers is less than the quantity of labor demanded by firms,

• A) real GDP equals potential GDP since firms make the decision on how many workers to hire.
• B) the real wage rate will decrease.
• C) the economy is at full employment.
• D) the unemployment rate is less than the natural unemployment rate.

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Definitions:

Political Orientation

A person or group's predetermined political stance or ideology, encompassing a range of views from conservative to liberal.

Democratic

Pertains to a form of government in which power is vested in the hands of the people, either directly or through elected representatives.

Federal Income Taxes

Taxes levied by the federal government on the annual income of individuals and businesses, used to fund public services and government operations.