A rise in the equilibrium wage rate will result in what kind of change in the...

A rise in the equilibrium wage rate will result in what kind of change in the AD/AS model?

A) the equilibrium price decreases

B) the aggregate demand curve shifts right

C) the short-run aggregate supply curve shifts right

D) short-run aggregate supply curve shifts left

Solutions

Expert Solution

Ans) the correct option is B) the aggregate demand curve shifts right

When the aggregate demand shifts right but aggregate supply remains constant, the wage rate increases

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

What is the equilibrium wage rate in an unregulated market (no minimum wage)?

Wage rate (dollars per hour) Labor supplied (millions of workers) Labor demanded (millions of workers) 11 7 1 10 6 2 9 5 3 8 4 4 7 3 5 What is the equilibrium wage rate in an unregulated market (no minimum wage)?

What kind of change is rusting of iron and what kind of change is conversion of...

What kind of change is rusting of iron and what kind of change is conversion of a compound into its elements? a)Both are chemical changes b) both are physical change c)rusting of iron is physical change and conversion of a compound into its element is a chemical change. -The scattering of a - particles b thin metal foils established that a)electrons are fundamental particles of all mater b)the mass of an atomis concentrated in a positively charged nucleus c)atoms are...

True or false? A consequence of a minimum wage set above the equilibrium wage rate...

True or false? A consequence of a minimum wage set above the equilibrium wage rate in the market for unskilled retail workers will be a surplus of unskilled retail workers

Question 36 At a current wage rate less than the market equilibrium wage rate, Select one:...

Question 36 At a current wage rate less than the market equilibrium wage rate, Select one: a. workers are willing to provide more labor than firms wish to hire. b. there is a shortage of labor. c. there is a surplus of workers, or unemployment. d. firms wish to hire fewer units of labor than workers desire to provide. Question 37 In principle, a tendency for firms to congregate in a single nation to reap trade-cost advantages related to key...

Show a loanable funds graph with a negative equilibrium interest rate. What kind of surplus or...

Show a loanable funds graph with a negative equilibrium interest rate. What kind of surplus or shortage exists if the ZLB binds?

Show a loanable funds graph with a negative equilibrium interest rate. What kind of surplus or...

Show a loanable funds graph with a negative equilibrium interest rate. What kind of surplus or shortage exists if the ZLB binds?

#1: The Equilibrium wage rate in an industry is found by -The intersection of the firm's...

#1: The Equilibrium wage rate in an industry is found by -The intersection of the firm's demand curve for labor and the riems supply curve of labor -The intersection of the market demand curve for labor and the marginal revenue product curve of labor -The intersection of the market demand curve for labor and the market supply curve of labor -negotiations between the union leadership and the manager of the firms #2: A union that pursueda policy of restrictingentry iver...

(1) What is the impact of a minimum wage above the equilibrium wage on the quantity...

(1) What is the impact of a minimum wage above the equilibrium wage on the quantity of labor supplied and demanded? (Practice drawing a supply and demand graph that shows this. Notice how the impact is affected if the supply curve is flatter or steeper, i.e., more elastic or inelastic. I will post the graph(s) to this discussion thread, after your initial responses are due. You need not submit any graphs in this Discussion Topic post, but you may find...

1. If you observed the equilibrium wage rate decreasing while equilibrium employment increased, which of the...

1. If you observed the equilibrium wage rate decreasing while equilibrium employment increased, which of the following would be a possible explanation? the labor force participation rate has decreased the unemployment rate has increased there has been an increase in labor productivity the rate of population growth has increased 2.Firm B produces 300 bicycles at a cost of $489each. Firm B sells 275 bicycles to consumers for $597 each. They do not sell the remaining bicycles in this time period....

Using well labelled diagrams, explain how the equilibrium price and equilibrium quantity of apples will change as a result of the following;

2.2 Using well labelled diagrams, explain how the equilibrium price and equilibrium quantity of apples will change as a result of the following; 2.2.1 A change in the wages of farm workers from R150 per day to R200 per day. (10) 2.2.2 A decrease in the price of fertilizers and a concurrent increase in the demand for apple juice. (10)

Subjects