When the Real Wage Falls,as a Result of a Rise

question 76

Multiple Choice

When the real wage falls,as a result of a rise in the price level

• A)the demand for labor will fall.
• B)the supply of labor will rise.
• C)firms will hire more labor as they move down the demand curve for labor.
• D)the nominal wage will fall.

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Definitions:

Drawer's Account

Refers to the account from which a check is drawn; the account belongs to the drawer (the person who writes the check).

Payee

A payee is a person or organization to whom money is paid or is to be paid.

Check

A written order instructing a bank to pay a specified amount of money from the writer's account to the person or entity in whose name the check has been issued.

Certificate Of Deposit

A savings certificate with a fixed maturity date and specified fixed interest rate that is issued by a bank.