If the Real Wage Rate Is Such That the Quantity

question 276

Multiple Choice

If the real wage rate is such that the quantity of labor supplied is greater than the quantity of labor demanded

• A) the economy is at full employment.
• B) actual real GDP will not equal potential GDP.
• C) job search decreases.
• D) labor resources are allocated efficiently.

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Definitions:

Stock of Assets

Represents the total value of financial and physical assets owned by an individual, company, or country.

Wealth

The accumulation of valuable resources and assets, both tangible and intangible, that provide economic power or security to an individual or entity.

Wages and Salaries

Monetary compensation paid by employers to employees for their labor services, typically on an hourly, weekly, or annual basis.

Redistribution of Income

Economic policies or mechanisms intended to adjust the distribution of wealth or income in a society.