Refer to the Following Figure When Answering the Following Questions

Multiple Choice

Refer to the following figure when answering the following questions.
Figure 15.2: The Labor Market
-In the labor market displayed in Figure 15.2, the distance between points and
Is called ________ and is due to ________.

A) involuntary unemployment; sticky nominal wages
B) unemployment; sticky real wages
C) the "reserve army"; institutional frictions
D) the excess demand for labor; rising TFP
E) government employment; a fiscal expansion