If the price level increases and workers' money wage rates remain ...

[jrubin]

If the price level increases and workers' money wage rates remain constant,which of the following will occur?
 
  I. The quantity of labor supplied will decrease.
  II. The real wage rate will decrease.
  III. The labor supply curve will shift rightward.
  A) I only
  B) I and II
  C) II and III
  D) I, II and III

Question 2

Suppose the country of Tiny Town experienced frictional unemployment. This frictional unemployment would
 
  A) definitely signal that the country is in a recession.
  B) be considered a natural occurrence in a growing economy.
  C) signal that there are more job leavers than job losers.
  D) signal that the number of discouraged workers is growing.

[cswans24]

Answer to Question 1

B

Answer to Question 2

B