Suppose that workers decrease their taste for leisure, and thus require less time away from work. What is likely to happen to wages and the quantity of labor hired?
A) wages increase, quantity of labor hired decreases
B) wages increase, quantity of labor hired increases
C) wages decrease, quantity of labor hired decreases
D) wages decrease, quantity of labor hired increases
Question 2
According to the Phillips curve
A) there is a direct relationship between price-level changes and the level of unemployment rate.
B) the unemployment rate is not affected by changes in the price level.
C) there is an inverse relationship between price-level changes and the unemployment rate.
D) price-level changes are not affected by changes in the unemployment rate.
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