A surplus of labor is eliminated by ________ in the real wage rate and a shortage of labor is eliminated by ________ in the real wage rate
A) an increase; a decrease
B) a decrease; an increase
C) an increase; an increase
D) a decrease; a decrease
E) None of the above answers is correct because shortages and surpluses are eliminated by changes in the demand for labor and the supply of labor, not the wage rate.
B
Economics
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A) reserve requirements increase. B) reserve requirements decrease. C) the discount rate increases. D) the discount rate decreases.
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When a competitive price-searcher market is in long-run equilibrium, the firms in the market will earn
a. substantial economic profits. b. zero economic profits. c. significant economic losses. d. an above-normal accounting rate of return.
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