If the Real Wage Rate Is Such That the Quantity

question 311

Multiple Choice

If the real wage rate is such that the quantity of labor supplied by workers is less than the quantity of labor demanded by firms

• A) the economy is at full employment.
• B) there is a shortage of labor.
• C) the real wage rate will fall to restore equilibrium.
• D) actual real GDP equals potential GDP because firms make the decision about how many workers to hire.

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Definitions:

Cash Flows

The movement of money into and out of a business, project, or financial product.

Proceeds

The total amount of money received from a transaction, often used in the context of the sale of assets.

Noncash Investing

Investment activities that do not involve cash transactions, often including exchanges of assets or stock for other assets or stock.

Equity Stock

Shares of ownership in a corporation, giving shareholders a stake in the company's assets and profits.