Wage rigidity: a. helps the labor market achieve equilibrium. b. prevents the capital market from realizing equilibrium. c. prevents the labor market from realizing equilibrium. O d. raises employment. e. Prevents unemployment.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Wage rigidity:
a. helps the labor market achieve equilibrium.
O b. prevents the capital market from realizing equilibrium.
c. prevents the labor market from realizing equilibrium.
d. raises employment.
O e. Prevents unemployment.
Transcribed Image Text:Wage rigidity: a. helps the labor market achieve equilibrium. O b. prevents the capital market from realizing equilibrium. c. prevents the labor market from realizing equilibrium. d. raises employment. O e. Prevents unemployment.
Refer to the following figure when answering the following questions.
Figure 7.3: Labor Market
WAGE
L2
LS
L$
LO
EMPLOYMENT
In the labor market depicted in Figure 7.3, investment in new physical capital shifts labor:
a. supply from to
b. supply from
to
to 4₁.
c. demand from 4to 42.
d. demand from to 42.
e. None of these answers is correct.
Transcribed Image Text:Refer to the following figure when answering the following questions. Figure 7.3: Labor Market WAGE L2 LS L$ LO EMPLOYMENT In the labor market depicted in Figure 7.3, investment in new physical capital shifts labor: a. supply from to b. supply from to to 4₁. c. demand from 4to 42. d. demand from to 42. e. None of these answers is correct.
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