An Increase in the Quantity of Capital Increases ________ and Increase

question 166

Multiple Choice

An increase in the quantity of capital increases ________ and increase in the full-employment quantity of labor increases ________.

• A) both the SAS and the LAS; only the SAS
• B) both the SAS and the LAS; only the LAS
• C) both the SAS and the LAS; both the SAS and the LAS
• D) only the LAS; both the SAS and the LAS

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Definitions:

Payroll Tax

Assessments collected from employers or employees, typically proportional to the salaries that workers are paid.

Labor Market

A marketplace where employers find workers and workers find jobs, involving the exchange of labor for compensation.

Payroll Tax

A tax imposed on employers and employees, calculated as a percentage of the salaries that employers pay their staff.

Per-hour Wage

The amount of money paid to an employee for each hour of work.