The figure above shows the U.S. supply of labor curve. If there is a simultaneous increase in the nominal wage rate of 10 percent and a 10 percent increase in the price level, there will be a
A) rightward shift of the supply of labor curve.
B) movement downward along the supply of labor curve from a point such as A to a point such as B.
C) leftward shift of the supply of labor curve.
D) movement upward along the supply of labor curve from a point such as C to a point such as B.
E) None of the above answers is correct because there is no change in the supply of labor curve.
E
You might also like to view...
Normally, to the extent that a governmental control mechanism succeeds in affecting price, it can be expected to lead to a corresponding
a. reduction in the volume of sales only if the price is forced down. b. reduction in the volume of sales if the price is forced down and an increase in the volume of sales if the price is forced up. c. decrease in the volume of sales whether the price is forced up or down. d. increase in the volume of sales whether the price is forced up or down.
When creating a demand curve for a good where one group gets the good for free and another group must pay the market price, you must
A. add the amount that the first group wants (when it is available to them free) to the quantity demanded by the second group at each price. B. add the price paid at each quantity. C. take an average of the quantity demanded at each price. D. add the quantity demanded for each group at each price.