If the real wage rate is such that the quantity of labor supplied ...

[vHAUNG6011]

If the real wage rate is such that the quantity of labor supplied by workers is less than the quantity of labor demanded by firms
 
  A) the economy is at full employment.
  B) there is a shortage of labor.
  C) the real wage rate will fall to restore equilibrium.
  D) actual real GDP equals potential GDP because firms make the decision about how many workers to hire.

Question 2

The income approach measures GDP by adding together compensation of employees, proprietors' income, ________.
 
  A) net investment, saving, and farmers' income
  B) net interest, rental income, and corporate profits
  C) net investment, rental income, and corporate profits
  D) net saving, investment income, and profits

[DylanD1323]

Answer to Question 1

B

Answer to Question 2

B

[vHAUNG6011]

Excellent

[mohan]

Thanks for the timely response, appreciate it