Typically If Real Wages Fall,the Quantity Demanded of Labor Rises

question 87

Multiple Choice

Typically if real wages fall,the quantity demanded of labor rises.If workers agree to 3 percent wage increases for a four-year period and inflation is more than 3 percent,then,based on this information alone,

• A) workers will have higher real wages because they get paid more.
• B) the quantity demanded of labor will increase,because real wages fell.
• C) workers must experience money illusion.
• D) the quantity demanded of labor will fall.
• E) the demand,but not the quantity demanded,for labor will fall.