When There Is a Temporary Increase in Total Factor Productivity

question 65

Multiple Choice

When there is a temporary increase in total factor productivity,

• A) labour demand increases and output supply decreases.
• B) labour demand decreases and output demand increases.
• C) labour demand increases and output demand increases.
• D) labour demand decreases and output supply decreases.
• E) labour demand increases and output supply increases.

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Definitions:

Common Stock

Common stock refers to shares of ownership in a corporation, granting holders voting rights and a share in the company's profits through dividends.

Commission Charges

Fees paid to an agent or company for facilitating a sale, typically calculated as a percentage of the sale price.

Dollar Amount

The dollar amount refers to a monetary value expressed in units of currency, particularly in dollars.

Cumulative Preferred Stock

A type of preferred stock where dividends accumulate if not paid in a given year, and must be paid out before any dividends on common stock.