Multiple Choice
Suppose the equilibrium wage rate in the labor market is $10 and the demand for labor increases. If wages are sticky, there will be a
A) surplus of labor and the wage rate declines.
B) shortage of labor and the wage rate increases.
C) shortage of labor and the wage rate stays the same.
D) surplus of labor and the wage rate increases.
Correct Answer:
Verified
Correct Answer:
Verified
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