Which of the Following Statements Is True

question 44

Multiple Choice

Which of the following statements is true?

• A) Countercyclical monetary policy stimulates an economy during a recession by shifting the labor demand curve to the left.
• B) Countercyclical monetary policy stimulates an economy during a recession by shifting the labor demand curve to the right.
• C) Countercyclical monetary policy stimulates an economy during a recession by shifting the labor supply curve to the left.
• D) Countercyclical monetary policy stimulates an economy during a recession by shifting the labor supply curve to the right.

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Definitions:

Market System

An economic system relying on market forces to allocate resources and to determine and regulate prices for goods and services.

What Will Be Produced

A fundamental economic question that addresses the kinds of goods and services to be made available in an economy, determined by factors such as resources, technology, and consumer preferences.

Consumer Sovereignty

The idea that what consumers want influences the goods and services produced in an economy.

Conform To Consumer Demands

Adjusting product offerings, services, or business practices to meet the expectations and preferences of consumers.