The Demand for Labor and Other Factors of Production Typically

question 57

Multiple Choice

The demand for labor and other factors of production typically decline in a recession because those factors

• A)Have become relatively scarcer than before the recession.
• B)Are no longer offered for sale in factor markets.
• C)Are derived from the demand for final output,which also declines in a recession.

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Definitions:

Unemployed Resources

Factors of production that are available for use but are not currently engaged in the production of goods or services.

Keynesian Model

An economic theory stating that government intervention through fiscal policies is necessary to moderate the boom and bust cycles of an economy.

Horizontal Range

In the context of data visualization or statistical analysis, it refers to the span or extent of values along the horizontal axis, typically representing time or categories.

AS Curve

The Aggregate Supply curve, depicting the total amount of goods and services that producers in an economy are willing to sell at different price levels.