The Supply of Labor Curve Has a ________ Slope Because

question 5

Multiple Choice

The supply of labor curve has a ________ slope because as the real wage rate rises,________.

• A)negative;firms hire fewer workers
• B)positive;the opportunity cost of leisure rises
• C)positive;the opportunity cost of leisure falls
• D)negative;households work more hours
• E)positive;firms offer more jobs

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Definitions:

Money Supply

The overall total of financial resources found in an economy at a given instance.

Excess Reserves

The reserves banks hold over and above the legal requirement set by the central bank, often seen as a precautionary measure.

Individual Bank

An individual bank refers to a financial institution dealing with deposits and loans of consumers and businesses, distinguishing itself by offering personalized banking products and services.

Depression

An intense and extended period of economic recession marked by a substantial drop in Gross Domestic Product (GDP), elevated rates of joblessness, and a decrease in the general price level of goods and services.