Figure 51 Alt Text for Figure 5

question 48

Multiple Choice

Figure 5.1 Alt text for Figure 5.1: In figure 5.1, a graph of the labour market.
Long description for Figure 5.1: The x-axis is labelled, labour (millions of workers) .The y-axis is labelled, wage (dollars per hour) , ranging from 0 to 28 in increments of 2.2 intersecting lines are shown.A line slopes down from the top left of the quadrant, near the value 24 on the y-axis, to the bottom right corner, near the end of the x-axis.A second line slopes up from the bottom left corner of the quadrant, near the origin, to the top right corner.4 points plotted along the 2 sloping lines, and the point of intersection of the 2 lines, are connected to the corresponding values on the x-axis, and to the values 10, 13 and 16 on the y-axis.
-Refer to Figure 5.1.Based on the graph of the labour market above, if a minimum wage of $16 per hour is imposed, which of the following will result?

• A)The quantity of labour demanded by firms will rise.
• B)The quantity of labour demanded by firms will fall.
• C)The unemployment rate will fall.
• D)The quantity of labour supplied by households will fall.
• E)Both A and C will occur.

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Definitions:

Aggregate Production

The total output of goods and services produced by an economy over a specified period.

Aggregate Production

The total output of goods and services produced by an economy over a given period.

Aggregate Purchases

The total amount spent on goods and services within an economy at a given period of time.

Unintended Inventory Investment

Occurs when a business accumulates inventory beyond its planned level, often due to lower than expected sales.