The Following Figure Shows Wage Rate Versus Quantity of Labor

question 123

Multiple Choice

The following figure shows wage rate versus quantity of labor.

-Refer to the figure above.If the economy then goes into a recession,what will happen to the demand for labor and the wage rate?

• A) Demand for labor will decrease, and the wage rate will decrease.
• B) Demand for labor will increase, and the wage rate will increase.
• C) Demand for labor will decrease, and the wage rate will remain about the same.
• D) Demand for labor will remain the same, and the wage rate will decrease.

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Definitions:

Modified Accrual Accounting

A method of accounting that recognizes revenues when they become measurable and available to finance expenditures of the fiscal period, and expenditures are recognized when the related fund liability is incurred.

Revenues Recognized

Income that a company has earned during a period but which is recorded in the financial statements according to accounting principles.

Proprietary Fund Types

Funds used by a government to account for activities similar to those found in the private sector, where the determination of net income is necessary or useful.

Fund Financial Statements

Financial reports specifically prepared to show the financial position and results of operations for governmental funds and non-profit organizations.