Author Question: If the price level rises by 4 percent and workers' money wage rates increase by 2 percent, then the ... (Read 168 times)

mpobi80 · **on:** Jun 29, 2018

If the price level rises by 4 percent and workers' money wage rates increase by 2 percent, then the

A) quantity of labor supplied decreases.
B) quantity of labor supplied increases.
C) quantity of labor supplied does not change because there is no change in the real wage rate.
D) the supply curve of labor shifts rightward.

Question 2

Frictional unemployment includes

A) unemployment caused by normal labor turnover associated with people leaving and entering the labor force.
B) unemployment caused by industries moving overseas to better meet foreign competition.
C) unemployment caused by a lack of education so that workers do not possess necessary job skills.
D) unemployment caused by automation of the work place that displaces unskilled workers.