If the price level increases, but workers' money wage rates remain constant,which of the following is TRUE?
I. The quantity of labor demanded will increase.
II. The real wage rate will decrease.
III. The demand for labor curve shifts rightward.
A) I only
B) I and II
C) II and III
D) I, II and III
B
You might also like to view...
In the long-run version of the aggregate demand and aggregate supply model, a shift in the aggregate demand curve:
A. can change the inflation rate as well as the real growth rate. B. can change the inflation rate, but not the real growth rate. C. can change the real growth rate, but not the inflation rate. D. can change neither the real growth rate nor the inflation rate.
The data in the above table show that when the price level is 120, the economy
A) is in a long-run macroeconomic equilibrium. B) has an inflationary gap. C) has a recessionary gap. D) will have falling money wage rates sometime in the future.