Other Things Constant, If the Cost of Labor Goes Down

question 150

Multiple Choice

Other things constant, if the cost of labor goes down, the profits of firms will

• A) increase, and short-run aggregate supply will shift to the right.
• B) fall, and short-run aggregate supply will shift to the left.
• C) increase, and long-run aggregate supply will shift to the right.
• D) fall, and long-run aggregate supply will shift to the left.

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Definitions:

Categorical Syllogism

A form of deductive reasoning consisting of three parts: a major premise, a minor premise, and a conclusion, each of which is a categorical proposition.

Major Term

In a syllogism, the term that serves as the predicate in the conclusion and is also found in one of the premises.

Minor Term

In a syllogism, the term that is the subject of the conclusion, linking the major and minor premises.

Middle Term

In a syllogism, the term that appears in both premises but not in the conclusion, serving as a link between them.