If, as the New Classical Theories Suggest, All Labour Markets

question 21

Multiple Choice

If, as the New Classical theories suggest, all labour markets had perfectly flexible wages, real wages would rise when labour demand

• A)rises and rise when labour supply rises.
• B)rises and fall when labour supply rises.
• C)rises and fall when labour supply falls.
• D)falls and falls when labour supply rises.
• E)falls and rise when labour supply falls.

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Definitions:

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Incorporation Theory

Incorporation theory is a legal doctrine in the United States that applies the protections of the Bill of Rights to the states through the Fourteenth Amendment's Due Process Clause.

Due Process Clause

A legal principle assuring fair treatment through the judicial system, especially as outlined in the Fifth and Fourteenth Amendments of the U.S. Constitution.

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