Which of the Following Statements Is True When Wages Are

question 172

Multiple Choice

Which of the following statements is true when wages are above the market-clearing wage?

• A) The larger the gap between the current market wage and the market-clearing wage, the lesser will be the amount of unemployment.
• B) The larger the gap between the current market wage and the market-clearing wage, the greater will be the amount of unemployment.
• C) At wage rates above the market-clearing wage rate, there is an excess demand for workers.
• D) At wage rates below the market-clearing wage rate, there is an excess supply of workers.