If Wage Rigidity Holds the Real Wage Above the Equilibrium

question 22

Multiple Choice

If wage rigidity holds the real wage above the equilibrium level, an increase in the supply of labour will _____ the number unemployed.

• A)increase
• B)decrease
• C)not change
• D)possibly increase, decrease, or leave unchanged

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Definitions:

Direct Labor Rate

The average cost per hour for labor directly involved in the production of goods or services.

Direct Labor Budget

A forecast of the labor costs directly associated with production, factoring in anticipated hourly rates and hours needed.

Direct Labor-Hours

The total hours worked by employees directly involved in the manufacturing process, used as a base for allocating overheads.

Direct Labor Rate

The cost per hour for direct labor, typically used in calculating the total direct labor cost for a product or job.