Question

In: Economics

The wage-setting curve slopes up because as the unemployment rate decreases, employment rent _________ and employers...

The wage-setting curve slopes up because as the unemployment rate decreases, employment rent _________ and employers need to pay a _______ wage to get the same amount of effort

Choices are:

  • A. increases; lower
  • B. increases; higher
  • C. falls; lower
  • D. falls; higher

Solutions

Expert Solution

Ans) the correct option is D. falls; higher

The decrease in unemployment is associated with higher probability of getting another job so higher wage has to be offered.

Rahul Sunny answered 2 years ago
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