Suppose We Wish to Examine the Determinants of the Equilibrium

Multiple Choice

Suppose we wish to examine the determinants of the equilibrium real wage and the equilibrium level of employment. In a graph with the real wage on the vertical axis, and the level of employment on the horizontal axis, the wage- setting relation will now be:

A) a curve that first slopes upward, then downward.
B) a vertical line.
C) an upward sloping line.
D) a horizontal line.
E) a downward sloping line.