Quizlet Suppose workers notice a fall in their nominal wage but are slow to notice that the price of things they consume have fallen by the same percentage. They may infer that the reward to working isa. temporarily low and so supply a smaller quantity of labor. b. temporarily low and so supply a larger quantity of labor. c. temporarily high and so supply a smaller quantity of labor. d. temporarily high and so supply a larger quantity of labor.

Question

Social Studies

Elijah Russell

20 February, 00:41

Quizlet Suppose workers notice a fall in their nominal wage but are slow to notice that the price of things they consume have fallen by the same percentage. They may infer that the reward to working isa. temporarily low and so supply a smaller quantity of labor. b. temporarily low and so supply a larger quantity of labor. c. temporarily high and so supply a smaller quantity of labor. d. temporarily high and so supply a larger quantity of labor.

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Answers (1)

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Rogelio Patterson · Answer 1

Temporarily low and so supply a smaller quantity of labor.

Explanation:

The higher the price the higher the supply and so the lower the price the lower then supply. This is demonstrated in the above economic situation as the worked have not noticed the decrease in price of other goods and so attribute decreas in wages to reduction in workers reward or wages, therefore decrease supply of labour.