When the Economy Swings Back Toward the Boom Part of a Business

question 7

Multiple Choice

When the economy swings back toward the boom part of a business cycle:

• A)labor demand will increase.
• B)cyclical unemployment will decrease.
• C)actual wages will approach the market-clearing level.
• D)All of these are true.

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Definitions:

Experimental Design

The blueprint for conducting a scientific study to ensure that the data collected allows for a valid conclusion.

Equalizes

Makes things equal or equivalent in value, quantity, significance, or effect.

Correlational Studies

Research methods that examine the relationship between two or more variables to determine if a change in one is associated with a change in the other(s).

Manipulating Factors

Variables that are deliberately changed or manipulated in an experiment to observe their effect on other variables.