If the Price Level Increases, but Workers' Money Wage Rates

question 341

Multiple Choice

If the price level increases, but workers' money wage rates remain constant,which of the following is TRUE?
I. The quantity of labor demanded will increase.
II. The real wage rate will decrease.
III. The demand for labor curve shifts rightward.

• A) I only
• B) I and II
• C) II and III
• D) I, II and III

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Definitions:

Total Annual Costs

The sum of all costs incurred by a business in a year, including both fixed and variable costs.

Cost Of Goods Sold

represents the direct costs attributable to the production of goods sold by a company, including material and labor costs.

Merchandise Purchases

The acquisition of goods that a company intends to resell to customers.

Fixed Product Cost

Costs that do not vary with the level of production or sales, such as salaries of permanent employees and rent.