When the labor market is in equilibrium,
A) there is full employment, which means that real GDP equals potential GDP.
B) there is full employment but real GDP might be greater than, less than, or equal to potential GDP.
C) the real wage rate rises to allow real GDP to equal potential GDP.
D) there is excess labor supplied, which keeps real GDP less than potential GDP.
E) the real wage rate falls to equal the nominal wage rate because real GDP is greater than potential GDP.
A
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The U.S. government is an asset to the U.S. economy when it
(a) effectively serves its role as the agent that defines and protects private property rights. (b) taxes one group of individuals and redistributes that taxed income to another group. (c) permits special groups to secure legislative protection from foreign competition in the industries which they own, manage or work within. (d) does all of the above.
State and local governments rely on ________ as their primary source of tax receipts.
A. contributions for social insurance B. indirect business taxes C. corporate taxes D. personal taxes