Suppose We Wish to Examine the Determinants of the Equilibrium

question 30

Multiple Choice

Suppose we wish to examine the determinants of the equilibrium real wage and equilibrium level of employment (N) .In a graph with the real wage on the vertical axis,and the level of employment on the horizontal axis,the price-setting relation will now be

• A)a vertical line.
• B)a horizontal line.
• C)an upward sloping line.
• D)a downward sloping line.
• E) kinked at the natural rate of unemployment.