When the Labor Market Is in Equilibrium

question 109

Multiple Choice

When the labor market is in equilibrium,

• A)there is full employment, which means that real GDP equals potential GDP.
• B)the real wage rate rises to allow real GDP to equal potential GDP.
• C)the real wage rate falls to equal the nominal wage rate because real GDP is greater than potential GDP.
• D)there is excess labor supplied, which keeps real GDP less than potential GDP.
• E)there is full employment but real GDP might be greater than, less than, or equal to potential GDP.

---

Definitions:

Colonialism

The policy or practice of acquiring full or partial political control over another country, occupying it with settlers, and exploiting it economically.

Taken-For-Granted Knowledge

Information or beliefs that are universally accepted without questioning or critical examination.

Postmodern Deconstruction

An analytical approach in postmodernism that seeks to understand and dissect complex ideas, texts, or structures by revealing assumptions and contradictions.

Colonialism

The approach or action of securing total or partial political sovereignty over another nation, populating it with colonizers, and making economic use of it.