Suppose the Wage Rate in the Labor Market Is $8

question 76

Multiple Choice

Suppose the wage rate in the labor market is $8 and more people entered the labor force, which of the following statements is correct?

• A) If wages are flexible, then wages will increase.
• B) If wages are sticky, the unemployment rate increases.
• C) If wages are sticky, the unemployment rate stays the same.
• D) If wages are flexible, the unemployment rate increases.

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Definitions:

Arrogance

Characterized by or revealing an exaggerated sense of one’s own importance or abilities.

Self-Selected Stakeholder

A person who chooses themselves to have an interest or investment in an initiative or project without being appointed or elected.

Mentor

An experienced and trusted advisor who provides guidance, knowledge, and support to less experienced individuals or startups.

Compatriot

An individual from the same country as another person.