If the Real Wage Rate Is Such That the Quantity

question 311

Multiple Choice

If the real wage rate is such that the quantity of labor supplied by workers is less than the quantity of labor demanded by firms

• A) the economy is at full employment.
• B) there is a shortage of labor.
• C) the real wage rate will fall to restore equilibrium.
• D) actual real GDP equals potential GDP because firms make the decision about how many workers to hire.

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Definitions:

Various Abilities

A term referring to the diverse range of skills or competences that different individuals possess.

Sensory Systems

The parts of the body involved in receiving and processing sensory information from the environment, including sight, hearing, taste, touch, and smell.

Hearing

The sensory process by which sound waves are converted into electrical signals and interpreted by the brain, allowing the perception of sound.

Vision

The faculty or state of being able to see; also, a concept or plan regarding the future.