Refer to the information provided in Figure 26.6 below to answer the question(s) that follow. Figure 26.6Refer to Figure 26.6. Suppose the equilibrium output is initially $600 billion. A decrease in the Z factors ________ equilibrium output and ________ the price level.

What is job search and what is the relationship between job search and unemployment? What factors can affect the amount of job search? Briefly discuss the effect of each factor

What will be an ideal response?

A beneficial oil-price shock increases labor demand. What happens to current employment and the real wage rate?

A) Both employment and the real wage rate would increase. B) Both employment and the real wage rate would decrease. C) Employment would increase and the real wage would decrease. D) Employment would decrease and the real wage would increase.