If the Wage Rate in the Labor Market Is $12

Multiple Choice

If the wage rate in the labor market is $12 and more previously unemployed people exited the labor force, which of the following statements is correct?

A) If wages are flexible, then wages will decrease.
B) If wages are sticky, the unemployment rate decreases.
C) If wages are sticky, the unemployment rate stays the same.
D) If wages are flexible, the unemployment rate increases.