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If the Price Level Rises by 3 Percent and Workers

Question 143

Multiple Choice

If the price level rises by 3 percent and workers' money wage rates increase by 2 percent, then the


A) quantity of labor demanded will decrease.
B) quantity of labor demanded will increase.
C) quantity of labor demanded does not change because there is no change in the real wage rate.
D) real wage rate increases.

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