MCQ 38 The analysis of the aggregate labour market suggests that a reduction in the supply of labour coupled with an increase in the capital stock will generate: A a rise in the real wage and a rise in the level of employment B a rise in the real wage and a fall in the level of employment C a rise in the real wage, but the impact on employment is uncertain D I do not want to answer this question. E a fall in the real wage, but the impact on employment is uncertain F no change in the real wage because the implied shifts in labour demand and supply cancel each other out
MCQ 38 The analysis of the aggregate labour market suggests that a reduction in the supply of labour coupled with an increase in the capital stock will generate: A a rise in the real wage and a rise in the level of employment B a rise in the real wage and a fall in the level of employment C a rise in the real wage, but the impact on employment is uncertain D I do not want to answer this question. E a fall in the real wage, but the impact on employment is uncertain F no change in the real wage because the implied shifts in labour demand and supply cancel each other out
Chapter18: Introduction To Macroeconomics: Unemployment, Inflation, And Economic Fluctuations
Section: Chapter Questions
Problem 16P
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Transcribed Image Text:мса 38
The analysis of the aggregate labour market suggests that a reduction in the supply of labour coupled with an increase in the capital stock will generate:
A
a rise in the real wage and a rise in the level of employment
В
a rise in the real wage and a fall in the level of employment
C
a rise in the real wage, but the impact on employment is uncertain
D
I do not want to answer this question.
E
a fall in the real wage, but the impact on employment is uncertain
F
no change in the real wage because the implied shifts in labour demand and supply cancel each other out
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