Author Question: Job rationing occurs when the real wage rate is A) above the equilibrium wage rate so there is a ... (Read 110 times)

ARLKQ · **on:** Jun 29, 2018

Job rationing occurs when the real wage rate is

A) above the equilibrium wage rate so there is a shortage of labor.
B) above the equilibrium wage rate so there is an excess supply of labor.
C) equal to the equilibrium wage rate so there is no excess supply of labor.
D) below the equilibrium wage rate so there is an excess supply of labor.
E) Both answers A and D are correct because whenever the real wage rate is above or below the equilibrium wage rate, there is an excess supply of labor.

Question 2

An increase in the price level leads to ________ in the demand for money, and an increase in real GDP leads to ________ in the demand for money.

A) no change; an increase
B) a decrease; a decrease
C) an increase; an increase
D) a decrease; an increase
E) an increase; a decrease