Other Things Constant, If the Cost of Labor Goes Down

question 150

Multiple Choice

Other things constant, if the cost of labor goes down, the profits of firms will

• A) increase, and short-run aggregate supply will shift to the right.
• B) fall, and short-run aggregate supply will shift to the left.
• C) increase, and long-run aggregate supply will shift to the right.
• D) fall, and long-run aggregate supply will shift to the left.

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Definitions:

Geometric Sequence

A sequence of numbers where each term after the first is found by multiplying the previous one by a fixed, non-zero number called the common ratio.

Geometric Sequence

An ordered list of numbers in which every term succeeding the initial one is obtained by multiplying the preceding term by a constant, non-zero value known as the ratio.

Nth Term

The term located at position n in a sequence, where n represents a particular position number.

Formula

A formula is a mathematical equation or rule expressed in symbols.