When the Real Wage Rate Exceeds the Equilibrium Real Wage

question 37

Multiple Choice

When the real wage rate exceeds the equilibrium real wage rate, there is a ________ of labor and the real wage rate will ________.

• A)surplus; fall
• B)shortage; fall
• C)shortage; rise
• D)surplus; rise
• E)surplus; not change because only efficiency wages or union wages can change.

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