If Both Labor Demand and Labor Supply Fall,what Will Happen

question 13

Multiple Choice

If both labor demand and labor supply fall,what will happen to the real wage,employment,and output?

• A) The real wage will increase,real output will increase,but the effect on employment depends upon the magnitudes of the shifts.
• B) The real wage will increase,but the effects of employment and real output depend upon the magnitudes of the shifts.
• C) The real wage,employment,and real output will all decrease.
• D) Employment and real output will decrease,but the effect on the real wage depends upon the magnitudes of the shifts.
• E) The real wage,employment,and real output will all increase.

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Definitions:

High Probability

A situation or event that has a strong likelihood of occurring.

Information Processing Style

The mental approach or strategy an individual uses to collect, interpret, and understand information.

Intuitive

Characterized by the ability to understand or know something immediately based on instinctive feelings rather than conscious reasoning.

Thinking

The process of considering or reasoning about something.