Real-wage rigidity in the Keynesian efficiency wage diagram of the labor market is depicted by
A) a vertical labor supply curve at the efficient level of employment,
B) a vertical labor demand curve at the efficient level of employment.
C) a horizontal line at the efficiency wage.
D) a steep, positively sloped labor supply curve depicting various efficiency wages at various employment levels.
C
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If there is a duopoly and the products are identical (homogeneous), the firm selling the product for a lower price:
a. will earn less revenue. b. will get 100% of the sales. c. will have a hard time being profitable. d. will be perceived to have lower quality products.
The price of one currency in terms of another country's currency is known as the
A) nominal exchange rate. B) real exchange rate. C) relative inflation rate. D) purchasing power parity rate.