-Refer to Figure 17

question 124

Multiple Choice

-Refer to Figure 17.2.If the supply of labor decreases,then equilibrium wage will ________ and equilibrium quantity of hours will ________.

• A) rise; fall
• B) fall; fall
• C) rise; rise
• D) fall; rise

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Definitions:

Lag

A delay between an action and its effect or between two related events.

Federal Open Market Committee

The branch of the Federal Reserve Board that determines the direction of monetary policy in the United States.

Federal Reserve

The Federal Reserve is the central banking system of the United States, responsible for monetary policy, regulation of financial institutions, and ensuring stability of the financial system.

Monetary Policy

The process by which a government, central bank, or monetary authority manages the supply of money and interest rates to achieve specific economic objectives.