In the Coordination Failure Model, a Rightward Shift in the Labour

question 21

Multiple Choice

In the coordination failure model, a rightward shift in the labour supply curve

• A) increases the real wage and increases employment.
• B) increases the real wage and decreases employment.
• C) decreases the real wage and increases employment.
• D) decreases the real wage and decreases employment.
• E) increases the real wage and increases output.

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Definitions:

Increase

A rise in the quantity or value of something, such as profits, revenue, weight, etc.

Put Provision

A clause in a bond or other security that allows the holder to force the issuer to buy back the security before its maturity date.

Call Provision

A clause in a bond contract allowing the issuer to repay the bond before its maturity date under specific conditions.

Convertible Bond

A type of bond that the holder can convert into a specified number of shares of the issuing company, usually at predetermined times during its life.