-In the above figure, which movement illustrates the impact of a rising price level and a constant money wage rate?
A) E to F
B) E to I
C) E to G
D) E to K

Question

-In the above figure, which movement illustrates the impact of a rising price level and a constant money wage rate?
A) E to F 
B) E to I 
C) E to G 
D) E to K

Quizplus · Accepted Answer

The movement from E to F illustrates the impact of a rising price level and a constant money wage rate. As the price level rises, the real wage rate falls, which leads to a decrease in the quantity of labor demanded.

-In the Above Figure, Which Movement Illustrates the Impact of a Rising