If the Full-Employment Quantity of Labor Increases, Then the

question 19

Multiple Choice

If the full-employment quantity of labor increases, then the

• A) SAS curve shifts rightward and the LAS curve does shifts leftward.
• B) SAS curve shifts rightward and the LAS curve does not shift.
• C) SAS curve shifts rightward and the LAS curve shifts rightward.
• D) LAS curve shifts rightward and the SAS curve does not shift.

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Definitions:

Effective Annual Rate

The interest rate that is adjusted for compounding over a given period, representing the actual annual return on an investment.

Semi-annually Return

The return on an investment calculated twice a year, showing the investment's performance over each six-month period.

Investment

The allocation of resources, such as capital, time, or effort, in hope of generating a gain or profit in the future.

Fat Tails

Refers to the occurrences of extreme movements in stock prices or higher than normal risks in investments, which lead to heavy tails in a probability distribution.