Use the Figure Below to Answer the Following Question

question 38

Multiple Choice

Use the figure below to answer the following question.

Figure 22.3.3
-Refer to Figure 22.3.3.As a result of the rightward shift in the demand curve for labour from LD0 to LD1,the equilibrium level of employment ________,potential GDP ________,and potential GDP per hour of labour ________.

• A)increases; increases; increases
• B)increases; decreases; increases
• C)decreases; increases; decreases
• D)decreases; decreases; decreases
• E)increases; increases; decreases

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Definitions:

Retention Ratio

The share of net income not disbursed as dividends to shareholders but rather reserved by the business for various uses.

Dividend Payout Ratio

The fraction of net income a firm pays to its shareholders in the form of dividends, compared to the portion reinvested in the business.

Percentage of Sales Approach

A method used in financial forecasting to estimate various elements of a financial statement as a percentage of forecasted sales.

Profit Margin

A financial metric that measures the amount of net income generated as a percentage of revenue, indicating how effectively a company can convert sales into net profits.