Larger increases in the demand for labor than in the supply of labor explain:

A. the substantial increase in real wages.
B. skill-biased technological change.
C. the slowdown in real wage growth.
D. increasing wage inequality.

Answer: A

Economics

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A typical concave (bowed out from the origin) production possibilities curve implies:

A. that economic resources are unlimited. B. that society must choose among various attainable combinations of goods. C. decreasing opportunity costs. D. that society is using a market system to allocate resources.

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If spending increased by $100, and the GDP increased $400 as a result, the MPC must be:

A. 0.70 B. 0.75 C. 4 D. 2

Economics