Refer to the Following Figure When Answering
Figure $\bar { w }$

Multiple Choice

Refer to the following figure when answering
Figure 7.4: Labor Market
-Consider the labor market depicted in Figure 7.4. Wage, $\bar { w }$ , is called ________ and ________ unemployment.

A) a wage ceiling; does nothing to
B) a wage rigidity; increases
C) the market wage; does nothing to
D) the market wage; increases
E) a wage rigidity; decreases