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:

Business Monopoly

A market structure characterized by a single seller or firm dominating the entire market, often leading to less competition and higher prices.

Price Equal

A situation where the market price stabilizes, reaching a point where supply equals demand.

Marginal Cost

The extra financial burden of manufacturing one more unit of a product or service.

Natural Monopolies

A situation where a single firm can supply a product or service to an entire market at a lower cost than two or more firms, making competition impractical.