Question
Please explain if the statements are correct or incorrect and draw graphs illustrating your points for easy understanding. At money wage rates below the long-run
Please explain if the statements are correct or incorrect and draw graphs illustrating your points for easy understanding.
"At money wage rates below the long-run equilibrium level, there is a shortage of labor, so the money wage rate rises and employment decreases. At money wage rates above the long-run equilibrium level, there is a surplus of labor, so the money wage rate falls and employment increases. At the long-run equilibrium money wage rate, there is neither a shortage nor a surplus of labor and the money wage rate remains constant, and employment is constant at its full employment level."
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