An Increase in Labour Supply

question 9

Multiple Choice

An increase in labour supply

• A)shifts FE to the right.
• B)shifts IS to the right.
• C)shifts LM to the right.
• D)increases capital.

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Definitions:

Apples

In economic terms, apples can be used as an example commodity to discuss principles like supply, demand, and market equilibrium.

Oranges

A citrus fruit known for its round shape and juicy, sweet interior, widely cultivated in warm climates.

Contract Curve

Represents the set of optimal allocations of resources between two agents in an economy, where no party can be made better off without making the other party worse off.

Utilities Possibilities Frontier

A curve depicting all possible allocations of goods and services that maximize two or more parties' utility under a given condition.