Holding Other Factors Constant, If a Larger Proportion of the Population

question 74

Multiple Choice

Holding other factors constant, if a larger proportion of the population enters the labor force as a result of a growing social acceptance of women working, then the real wages of workers will ______ and employment of workers will _____.

• A)increase; increase
• B)increase; decrease
• C)decrease; not change
• D)decrease; increase

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Definitions:

Anti-Recession Policies

Government measures intended to combat economic downturns, involving fiscal and monetary actions to stimulate the economy.

Equation of Exchange

An economic equation that describes the relationship between the money supply, velocity of money, price level, and an economy's output.

GDP Rise

An increase in the Gross Domestic Product, indicating growth in the economy and the production of goods and services.

Velocity

In economic terms, the rate at which money is exchanged from one transaction to another and how much a unit of currency is used in a given period.