If the Number of People in the Labour Force ________

question 22

Multiple Choice

If the number of people in the labour force ________, then ________.

• A) increases; the unemployment rate definitely increases
• B) decreases; the labour force participation rate increases
• C) decreases, the unemployment rate does not change
• D) decreases; the unemployment rate definitely decreases
• E) increases; the labour force participation rate increases

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Definitions:

Explicit Resource Price

The monetary value that is directly paid for the use of a resource or asset, such as wages for labor or rent for land.

Aggregate Supply Curve

A graphical representation showing the relationship between the total supply of goods and services produced in an economy and the price level.

Price Level

The aggregated mean of prices for all economic goods and services.

Positively Sloped

Describes a line on a graph that rises from left to right, indicating a positive relationship between two variables where an increase in one variable corresponds with an increase in the other.