Which of the Following Would Not Be an Expected Response

question 110

Multiple Choice

Which of the following would not be an expected response from a decrease in the price level and so help to explain the slope of the aggregate-demand curve?

• A)When interest rates fall, In-and-Out Convenience Stores decides to build some new stores.
• B)The exchange rate falls, so French restaurants in Paris buy more Kansas beef.
• C)Tyler feels wealthier because of the price-level decrease and so he decides to remodel his kitchen.
• D)With prices down and wages fixed by contract, Fargo Concrete Company decides to lay off workers.

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Definitions:

Labor Costs

The total expenditure incurred by employers to compensate employees, including wages, salaries, benefits, and taxes.

Contracted Labor

Work performed by individuals or companies who are not employees but are hired on a contract basis.

Cost of Goods Manufactured

The total production cost of goods that are completed and ready for sale during a specific accounting period.

Manufacturing Company

A business engaged in the production of goods using labor, machinery, and raw materials.