If the real wage rate is such that the quantity of labor supplied equals the quantity of labor demanded
A) a full-employment equilibrium occurs.
B) actual GDP equals potential GDP.
C) the supply curve of labor is vertical.
D) Both answers A and B are correct.
D
Economics
You might also like to view...
Growth in the Solow residual was fastest in the
A) 1950s. B) 1960s. C) 1970s. D) 1980s.
Economics
If the Fed wanted to increase the money supply, they could:
A. increase the reserve requirement, reducing the reserve ratio. B. decrease the reserve requirement, reducing the reserve ratio. C. increase the reserve requirement, increasing the reserve ratio. D. decrease the reserve requirement, increasing the reserve ratio.
Economics