asked 72.7k views
5 votes
g If the price level rises and the money wage rate stays the same, what effect will this have upon labor demanded and production

1 Answer

2 votes

Answer:

The quantity of labour demanded increases ad production increases

Step-by-step explanation:

When price level rises and the money wage rate stays the same, the real money wage rate falls. This makes it cheaper for firms to hire labour. As a result, their demand for labour increases and this leads to an increase in production.

answered
User Noushid P
by
7.7k points

No related questions found

Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.