-Referring to the Graph Above,assume That,at First,the Labor Market Is

question 24

Multiple Choice

-Referring to the graph above,assume that,at first,the labor market is in equilibrium at point 4.Then,demand shifts to pass through point 3,and the real wage adjusts to the new equilibrium.________ is ________ at the new equilibrium,compared to the original equilibrium.

• A)unemployment;larger
• B)unemployment;smaller
• C)the labor force;smaller
• D)employment;larger

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Definitions:

Human Organs

Biological components of the human body that perform specific functions necessary for life.

Market Demand

The total demand for a product or service within a market, reflecting the combined desires and purchasing power of consumers.

Market Supply

The total quantity of a good or service that producers are willing and able to sell at a given price in a given period.

Equilibrium Price

The market price at which the quantity supplied of a good equals the quantity demanded, leading to a stable market condition.