Which of the Following Is Not Adequately Explained by the Labor-Supply-And-Demand

question 124

Multiple Choice

Which of the following is not adequately explained by the labor-supply-and-demand model?

• A)The increase in the employed labor force during economic expansions
• B)The effect of lower wages on the incentive for firms to hire more people
• C)Why there is unemployment
• D)Why real wages rise during economic expansions
• E)The effect of higher wages on the incentive for people to work more hours

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Definitions:

Environmental-protection Legislation

Laws and regulations enacted by governments to regulate activities that cause environmental degradation, and to protect natural resources and ecosystems.

Money Supply

The total amount of monetary assets available in an economy at a specific time, including cash, bank deposits, and other liquid assets.

Inflation Rate

The speed at which the overall price level for goods and services increases, leading to a decrease in buying power.

Unemployment Rate

The percentage of the labor force that is jobless and actively seeking employment, a key economic indicator of a country's economic health.