In the Two-Period SOE Model with Production, an Increase in Labour

question 42

Multiple Choice

In the two-period SOE model with production, an increase in labour supply

• A)causes output to decline.
• B)causes investment to increase.
• C)causes investment to decline.
• D)causes consumption to increase.
• E)causes the current account surplus to decline.

Understand various global market entry strategies.

Identify and analyze the advantages and disadvantages of direct investment.

Distinguish between licensing, franchising, and joint ventures.

Recognize strategies for matching products and promotional efforts to global markets.

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Definitions:

Inflation

The level of acceleration in the universal pricing for goods and services, diminishing the power of the dollar.

Inflation Expectations

The rate at which individuals expect the general price level of goods and services to change over a period of time.

Short-run Phillips Curve

A representation in economics that shows an inverse relationship between the rate of unemployment and the rate of inflation in the short-term.

Unemployment

The condition wherein people who are able and willing to work and are actively looking for work cannot secure a job.