If Wage Rigidity Holds the Real Wage Above the Equilibrium

question 22

Multiple Choice

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

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

---

Definitions:

Gross Margin

A company's total sales revenue minus its cost of goods sold, indicating the financial health and profitability of a product or business.

Direct Labor

Workers or employees who are directly involved in the production of goods or services.

Percentage Markup

The increase in cost price expressed as a percentage of the cost.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials and labor.