If Wage Rigidity Holds the Real Wage Above the Equilibrium

question 35

Multiple Choice

If wage rigidity holds the real wage above the equilibrium level, an increase in the supply of labor will the number unemployed.

• A)increas.
• B)decreas.
• C)not change.
• D)possibly increase, decrease, or leave unchanged.

---

Definitions:

Individual Wealth

The total value of all assets owned by a single person, minus any debts.

Communism

A political and economic ideology that aims at creating a classless society in which the means of production are owned and controlled by the community as a whole.

Capitalism

An economic system based on private ownership of the means of production and their operation for profit.

Capitalist States

Countries where the trade and industry are controlled by private owners for profit, rather than by the state.