Consider the Labor Market for Nurses, Which Initially Is in Equilibrium

question 150

Multiple Choice

Consider the labor market for nurses, which initially is in equilibrium. Suppose the output price for nursing services increases. Holding all else equal, what effect will this have on the labor market for nurses?

• A) The equilibrium wage will increase, and the equilibrium quantity of nurses will increase.
• B) The equilibrium wage will increase, and the equilibrium quantity of nurses will decrease.
• C) The equilibrium wage will decrease, and the equilibrium quantity of nurses will increase.
• D) The equilibrium wage will decrease, and the equilibrium quantity of nurses will decrease.

---

Definitions:

Bond Ratings

These are assessments provided by credit rating agencies on the creditworthiness of bond issuers, indicating the risk level of bonds defaulting.

Moody's Baa

Moody's Baa rating denotes bonds that are considered medium-grade, subject to moderate credit risk, and as such, investors should investigate further.

S&P's BBB

A credit rating by Standard & Poor's that indicates an investment grade with moderate credit risk.

Bond Ratings

A system used to assess the credit quality and risk level of bonds, typically assigned by rating agencies.