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.

a.

Explanation:

Based on the scenario being described within the question it can be said that the workers may infer that the reward to working is temporarily low and so supply a smaller quantity of labor. Mainly due to the fact that they did not notice the drop in price of everything they consume. If they were to have notice this drop then the workers would also notice that the buying power of the money that they are currently receiving has not changed at all.

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