If the Price Level Rises by 3 Percent and Workers

question 143

Multiple Choice

If the price level rises by 3 percent and workers' money wage rates increase by 2 percent, then the

• A) quantity of labor demanded will decrease.
• B) quantity of labor demanded will increase.
• C) quantity of labor demanded does not change because there is no change in the real wage rate.
• D) real wage rate increases.

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Definitions:

Corticosteroids

A class of steroid hormones produced in the adrenal cortex or manufactured synthetically, used chiefly as anti-inflammatory and immunosuppressant agents.

Adrenal Glands

Small, triangular glands located on top of the kidneys that produce hormones such as adrenaline and cortisol.

Diabetes

A chronic condition characterized by high levels of sugar in the blood due to the body's inability to produce or effectively use insulin.

ADH

Antidiuretic Hormone, a hormone that helps regulate water balance in the body.