The quantity of labor demanded by a firm depends upon
A) the nominal wage rate not the real wage rate.
B) the real wage rate not the nominal wage rate.
C) both the real wage rate and the nominal wage rate.
D) neither the real wage rate nor the nominal wage rate.
E) either the real wage rate or the nominal wage rate, depending whether the price level is increasing or decreasing.
B
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According to Okun's law, if output grew 1% and full-employment output rose 3%, what would be the change in the unemployment rate?
A) -2 percentage points B) -1 percentage point C) 1 percentage point D) 2 percentage points
When studying individuals' economic behavior, economists assume that
A) individuals understand the rationale for all their actions. B) individuals act as if they were rational. C) only educated people act as if they were rational. D) self-interest is of limited relevance in predicting an individual's actions.