The demand for labor curve shows:a. an inverse relationship between the real wage and the amount of laborhired. b. a positive relationship between the real wage and the amount of laborhired. c. an inverse relationship between the real wage and the number ofworkers who are willing to work. d. a positive relationship between the real wage and the number ofworkers who are willing to work. e. that real wages are constant.

Question

Johan Pearson

Business

22 August, 14:14

The demand for labor curve shows:a. an inverse relationship between the real wage and the amount of laborhired. b. a positive relationship between the real wage and the amount of laborhired. c. an inverse relationship between the real wage and the number ofworkers who are willing to work. d. a positive relationship between the real wage and the number ofworkers who are willing to work. e. that real wages are constant.

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Answers (1)

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Nathaniel Gibbs · Answer 1

The correct answer here is d.

Explanation:

Real wage is the nominal wages adjusted for price changes. It reflects the purchasing power earned by the workers.

There will be a direct and positive relationship between real wages and number of workers who are willing to work. This means when there is an increase in the real wages, more workers will be willing to work because they will be earning more. Reverse will be the situation in case of reduced real wages.