Other Things the Same, an Increase in Wages Above Their

question 679

Multiple Choice

Other things the same, an increase in wages above their equilibrium level

• A)increases frictional unemployment but leaves the natural rate of unemployment unchanged.
• B)increases frictional unemployment and increases the natural rate of unemployment.
• C)increases structural unemployment but leaves the natural rate of unemployment unchanged.
• D)increases structural unemployment and increases the natural rate of unemployment.

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Definitions:

Material Costs

Expenses for raw materials that are used in the production of goods.

First-In, First-Out

An inventory valuation method where the first goods purchased or produced are the first ones to be sold or used, presuming that older inventory is used before newer inventory.

Units Completed

The total number of units produced and finished during a specific period in the manufacturing process.

Direct Materials

Raw materials that are directly traceable to the production of a specific good or service and an integral part of the finished product.