When Workers Expect the Real Wage to Rise at a Rate

question 42

Multiple Choice

When workers expect the real wage to rise at a rate similar to productivity improvements,________.

• A)the decrease in labor supply raises the real wage
• B)the increase in labor supply lowers the real wage
• C)the increase in labor supply raises the real wage
• D)the decrease in labor supply lowers the real wage

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Definitions:

Bilateral Contract

A mutual agreement between two parties where each promises to perform an act in exchange for the other party's act.

Valid Contract

A legally binding agreement between parties that is enforceable by law, meeting all essential elements like offer, acceptance, consideration, and mutual intent.

Rejection

In contract law, an express or implied manifestation of an offeree’s unwillingness to contract on the terms of an offer. In sales law, a buyer’s refusal to accept goods because they are defective or nonconforming.

Firm Offer

A legally binding proposal in contract law, ensuring the offer remains open for a specified time without the need for consideration.