If the Price Level Rises by 3 Percent and Workersʹ

question 7

Multiple Choice

If the price level rises by 3 percent and workersʹ money wage rate increase by 1 percent, then the

• A) real wage rate increases.
• B) quantity of labor supplied does not change because there is no change in the real wage rate.
• C) quantity of labor supplied decreases.
• D) quantity of labor supplied increases.

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Definitions:

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with the unconditioned stimulus, eventually comes to trigger a conditioned response.

Reinforcer Stimulus

A stimulus that increases the likelihood of a behavior by providing a rewarding outcome.

Unconditioned Stimulus

A stimulus that naturally and automatically triggers a response without prior conditioning or learning.

Loud Noise

A sound that is strong and high in volume, which can potentially cause hearing loss or damage after prolonged exposure.