A fall in the price level brings a ________ in the real wage rate that ________ profits which leads to ________
A) fall; increases; firms temporarily shutting down
B) rise; reduces; firms restarting production
C) rise; increases; firms temporarily shutting down
D) rise; reduces; firms temporarily shutting down
E) rise; increases; firms restarting production
D
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Frictional unemployment is often the result of changes in the demand for labor among different firms
a. True b. False Indicate whether the statement is true or false
The wealth effect stems from the idea that a higher price level
a. increases the real value of households' money holdings. b. decreases the real value of households' money holdings. c. increases the real value of the domestic currency in foreign-exchange markets. d. decreases the real value of the domestic currency in foreign-exchange markets.