Assuming a 5-percent decrease in both the nominal (money) wage and 5-percent increase in the price level in the classical model, then
a. both the quantity supplied and demanded of labor will increase.
b. the quantity supplied of labor will increase and the quantity demanded of labor will decrease.
c. both the quantity supplied and demanded of labor will decrease.
d. the quantity of labor supplied and demanded would remain constant.
D
Economics
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Specialization is the result of:
A) hiring experienced workers. B) paying higher wages to experienced workers. C) workers developing a certain skill set. D) increased demand for a firm's commodity.
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The horizontal summation of all individual demands at different given prices results in the:
a. market supply curve. b. individual supply curve. c. individual demand curve. d. equilibrium demand and supply curves. e. market demand curve.
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