jervontaemorris5418 jervontaemorris5418
  • 18-12-2020
  • Business
contestada

g If the price level rises and the money wage rate stays the same, what effect will this have upon labor demanded and production

Respuesta :

ewomazinoade ewomazinoade
  • 20-12-2020

Answer:

The quantity of labour demanded increases ad production increases

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.

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