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Refer to the Information Provided in Figure 13

Question 136

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Refer to the information provided in Figure 13.4 below to answer the questions that follow. Refer to the information provided in Figure 13.4 below to answer the questions that follow. Figure 13.4 -Refer to Figure 13.4. The demand for labor rises from D' to D. If firms had entered into explicit contracts with workers that set wages for 3 years, then the wage rate will ________ and employment will ________. A) remain at $8; rise to 400 million B) remain at $10; fall to 200 million C) rise to $10; remain at 200 million D) rise to $10; rise to 300 million Figure 13.4
-Refer to Figure 13.4. The demand for labor rises from D' to D. If firms had entered into explicit contracts with workers that set wages for 3 years, then the wage rate will ________ and employment will ________.


A) remain at $8; rise to 400 million
B) remain at $10; fall to 200 million
C) rise to $10; remain at 200 million
D) rise to $10; rise to 300 million

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