The Labor-Supply-And-Demand Model Predicts That During an Economic Expansion

question 73

Multiple Choice

The labor-supply-and-demand model predicts that during an economic expansion

• A)there will be an increase in the real wage and an increase in employment.
• B)there will be a decrease in the real wage and an increase in employment.
• C)there will be an increase in the real wage and a decrease in employment.
• D)there will be a decrease in the real wage and a decrease in employment.
• E)there will be no change in the real wage but employment will increase.

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Definitions:

Transfer Price

A price charged for goods or services transferred between departments or divisions of the same company or between affiliated companies.

Valve Division

Refers to a specialized business unit within a company that focuses on the production and sales of valves.

Variable Expenses

costs that vary in total in direct proportion to changes in activity level or volume, such as materials costs or commission expenses.

Transfer Price

The rate assigned to commodities or services moved between branches or associated companies of the same entity.