Demand for workers in some industry declines. These workers are reluctant to have a cut in their nominal wage. However,

a. inflation will raise their real wage and so increase the number of available workers.
b. inflation will raise their real wage and so decrease the number of available workers
c. inflation will reduce their real wage and so increase the number of available workers.
d. inflation will reduce their real wage and so decrease the number of available workers.

d

Economics

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The labor movement has been largely an economic movement, not a political phenomenon

Indicate whether the statement is true or false

Economics

Suppose a monopsonist hires its second worker and this person has a marginal labor cost of $75 per day. If the wage rate is now $62.50 per day, what was the wage rate of the first worker before the second was hired?

a. $40 b. $45 c. $50 d. $55 e. $60

Economics