Why Does Increasing Employment Not Necessarily Increase Living Standards

question 6

Multiple Choice

Why does increasing employment not necessarily increase living standards?

• A) Productivity always increases as employment increases.
• B) Living standards and employment are always positively related.
• C) Increasing employment may not be accompanied by higher real wages
• D) There is no upper limit to labor force participation.
• E) Real wages are not adjusted for inflation.

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