When the real wage is below the equilibrium price in the labor market ________.
A) we have an excess supply of labor and the real wage should fall
B) we have an excess demand of labor and the real wage should fall
C) we have an excess demand of labor and the real wage should increase
D) we have an excess supply of labor and the real wage should increase
E) none of the above
Question 2
The 2009 fiscal stimulus package was passed ________.
A) to prevent the real interest rate from rising
B) to shift the IS curve to the left
C) to raise aggregate output at any interest rate
D) all of the above
E) none of the above
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