Suppose the Current Equilibrium Real Wage Is $15 an Hour

question 28

Multiple Choice

Suppose the current equilibrium real wage is $15 an hour.Which of the following is true?

• A) A real wage above $15 an hour would lead to an excess demand for labor
• B) A real wage above $15 an hour would lead to an excess supply of labor
• C) The real wage must fall to prevent unemployment
• D) The real wage must rise to prevent unemployment
• E) A real wage below $15 an hour would lead to an excess supply of labor

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Definitions:

Manufacturing Statement

A financial document summarizing the costs associated with the production of goods within a specific period, including materials, labor, and overhead.