If the Real Wage Rate Is Such That the Quantity

question 81

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) the economy is at full employment.
• B) there is a shortage of labor.
• C) real GDP equals potential GDP since firms make the decision on how many workers to hire.
• D) the real wage rate will decrease.

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Definitions:

Compounded Quarterly

The process where the interest earned is added to the principal sum, and the next interest calculation is based on the principal plus the previously earned interest, recalculated every quarter.

Compounded Semi-Annually

The process of earning interest on both the initial principal and the accumulated interest from previous periods, calculated twice a year.

Insurance Settlement

The payment made by an insurance company to a claimant or policyholder following a valid claim.

Retirement

The act of leaving one's job and ceasing to work, typically upon reaching a certain age or due to personal choice.