Home » Real Wage 20 30 10 50 60 70 80 90 100 110 120 130 Labor ( Millions ! Question 15 The graph above shows the labor market in a country . The horizontal…

# Real Wage 20 30 10 50 60 70 80 90 100 110 120 130 Labor ( Millions ! Question 15 The graph above shows the labor market in a country . The horizontal…

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Real Wage20 30 10 50 60 70 80 90 100 110 120 130Labor ( Millions !Question 15The graph above shows the labor market in a country . The horizontal axis measures the numberof workers . Wages and prices are fully flexible . “We know that currently the nominal wage rateequals W = \$4,000 and the price level equals F = 100 . If the price level increases by 20%/} , theequilibrium nominal wage will equal :”Equilibrium Nominal Wage = \$4, 400VB .Equilibrium Nominal Wage = \$4. 500[ .Equilibrium Nominal Wage = \$4. 8:00D .Equilibrium Nominal Wage = \$5, 000E .None of the above .Question 16The graph above show’s the labor market in a country . The horizontal axis measures the numberof workers . Wages and prices are fully flexible .”We know that currently the nominal wage rate*equals W = \$4, 000 and the price level equals P = 100 . Over time , demand for labor increases by40 million workers and supply of labor by 20 million workers . As a result , the equilibrium real wagechanges to`Equilibrium Real Wage = \$DVB .Equilibrium Real Wage = TO[ .Equilibrium Real Wage = EDD .Equilibrium Real Wage = 50E .None of the above .

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