When the Labour Market Is in Equilibrium

question 41

Multiple Choice

When the labour market is in equilibrium,

• A) the real wage rate falls to equal the nominal wage rate because real GDP is greater than potential GDP.
• B) there is full employment but real GDP might be greater than, less than or equal to potential GDP.
• C) there is full employment, which means that real GDP equals potential GDP.
• D) the real wage rate rises to allow real GDP to equal potential GDP.
• E) there is excess labour supplied, which keeps real GDP less than potential GDP.

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Definitions:

Social Equality

A state in which all individuals within a society have the same status in terms of rights, freedoms, and opportunities.

Time Discipline

The social and economic practice of coordinating and regulating human activities and work efficiency through the strict measurement and management of time.

Labor Movement

A socio-political movement advocating for the rights and interests of workers, including better working conditions, higher wages, and collective bargaining.

South

A reference often used in the context of the United States to designate the southeastern states, historically characterized by their support for slavery and later segregation.