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:

Hostile Work Environment

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