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tigry1 [53]
2 years ago
7

Involuntary unemployment occurs when the wage rate is below the equilibrium wage rate. exists when there is an excess quantity o

f labor supplied. will increase as the wage rate falls. exists when there is a shortage of labor.
Business
1 answer:
Natali5045456 [20]2 years ago
3 0

Answer:

exists when there is an excess quantity of labor supplied.

Explanation:

Involuntary unemployment is the situtation in which the labor actually work and also work at the prescribed wage rate in that time when the job is not getting

It could be arise when there is a lacking of the aggregate demand or total demand also when there is a excess of labor supply

so according to the given situation, the second option is correct

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