Suppose There Is a Rise in the Price Level, but No

question 60

Multiple Choice

Suppose there is a rise in the price level, but no change in the money wage rate. As a result, the quantity of labor demanded

• A) increases.
• B) decreases.
• C) does not change because there is no change in the real wage rate.
• D) decreases only if the money wage rate also decreases.

---

Definitions:

Job Characteristics Approach

A theory that suggests jobs can be designed with specific characteristics to increase employee motivation and satisfaction.

Feedback

Information given to a person or group about their behavior, performance, or product, used as a basis for improvement.

Task Identity

The degree to which a job requires completion of a whole and identifiable piece of work, meaning the employee can see the outcome of their efforts.

Skill Variety

describes the degree to which a job requires a range of different activities and skills for its completion, contributing to employee satisfaction and motivation.