A decrease in the real wage would result in a
A) movement along the labor demand curve, causing an increase in the number of workers hired by the firm.
B) shift of the labor demand curve, causing an increase in the number of workers hired by the firm.
C) movement along the labor demand curve, causing a decrease in the number of workers hired by the firm.
D) shift of the labor demand curve, causing a decrease in the number of workers hired by the firm.
A
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According to your authors, which of the following is necessary for real-world markets to clear?
A) Supply and demand curves B) The hard work of expert economists C) A well-managed national economic plan D) "Rules of the game," which allow for competitive bidding on scarce goods E) Nothing more than pure luck
Price indexes can overstate inflation because they
A) omit some quality improvements. B) do not contain the prices of any used goods. C) do not contain the prices of foreign goods. D) do not contain the prices of services.