Quantity of salt 12. Which of the following statements about the wage-setting cu
ID: 1119990 • Letter: Q
Question
Quantity of salt 12. Which of the following statements about the wage-setting curve is correct (Chapter 9)1 Select one answer a. The wage-setting curve depicts the workers' reservation wage for different levels of economy-wide employment. b. At each point (Uw) on the wage-setting curve, the workers are choosing their best response effort level given the real wage w and unemployment rate U. c. A lower unemployment rate shifts down the wage-setting curve d. An exodus of European workers as a result of the Brexit would result in a downward shift of the UK's wage-setting curve.Explanation / Answer
Answer.) b.) at each point (U,w) on the wage setting curve, the workers are choosing their best response effort level given the real wage w and unemployment rate U.
The outcome of the wage-setting process across all firms in the economy is the wage-setting curve, which shows the wage associated with each unemployment rate.