An Increase in the Real Wage Would Result in a

question 98

Multiple Choice

An increase in the real wage would result in a

• A)movement along the labour demand curve,causing an increase in the number of workers hired by the firm.
• B)shift of the labour demand curve,causing an increase in the number of workers hired by the firm.
• C)movement along the labour demand curve,causing a decrease in the number of workers hired by the firm.
• D)shift of the labour demand curve,causing a decrease in the number of workers hired by the firm.

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Definitions:

Total Savings

The aggregate amount saved by individuals, businesses, and the government, often measured over a specific time period.

Capital Formation

The process of building up the stock of physical and financial assets in an economy, often through investment in productive assets.

Autonomous Consumption

The level of consumption that occurs when income is zero; it represents the expenditures that consumers must make even when they have no income.

Induced Consumption

Consumer spending that increases when income increases, and decreases when income decreases, reflecting behavioral responses to changes in income.