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.
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.
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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcac51466-6b9b-4636-8a00-5ceae0d75fcd%2Fccf14431-9f40-4b94-827d-a84c515a2bf8%2Fahxqm2b_processed.png&w=3840&q=75)
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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcac51466-6b9b-4636-8a00-5ceae0d75fcd%2Fccf14431-9f40-4b94-827d-a84c515a2bf8%2Fhn9bp6k_processed.png&w=3840&q=75)
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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