If the Price Level Rises by 3 Percent and Workers

question 327

Multiple Choice

If the price level rises by 3 percent and workers' money wage rate increase by 1 percent, then the

• A) quantity of labor supplied decreases.
• B) quantity of labor supplied increases.
• C) quantity of labor supplied does not change because there is no change in the real wage rate.
• D) real wage rate increases.

---

Definitions:

Purchase-Money Security Interest

A legal claim granted to lenders over items purchased, serving as collateral for the loan used to purchase the goods.

Possession Of Collateral

Holding or control over property or assets pledged as security for a loan or obligation.

Private Sale

A transaction of goods or property conducted directly between individuals or parties without the involvement of a public auction or open market.

Public Sale

The process of selling goods or assets to the highest bidder in an open and public manner.