Question 9 17 pts With the real wage on the vertical axis an

Question 9 1.7 pts With the real wage on the vertical axis and employment (N) on the horizontal axis, we know that the PS curve is downward sloping. O the WS curve is downward sloping. the PS curve is upward sloping. ? the WS curve is upward sloping.

Solution

The WS curve is upward sloping with real wage on the vertical axis and employment on the horizontal axis. The WS curve shows the relationship between real wage and the employment level of the economy. With higher efficiency wages, the worker can more easily find employment and the firms thus must pay higher wages to the workers.