Which Is an Example of a Change in the Price

question 98

Multiple Choice

Which is an example of a change in the price of another resource that decreases labor demand?

• A) A decline in the demand for computers in Europe reduces the demand for workers in the domestic computer industry.
• B) The rise of hair salons for both men and women reduces the demand for barbers.
• C) A decrease in the educational skills of manufacturing workers decreases the demand for such workers.
• D) An increase in the price of chemical equipment increases the cost of producing fertilizer,thus decreasing the demand for workers who make fertilizer.

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Definitions:

Inflation Expectations

The rate at which people anticipate prices will increase in the future, which can influence current economic behavior and monetary policy.

Short-run Phillips Curve

A graphical representation showing an inverse relationship between the rate of inflation and the rate of unemployment in the short-term.

Production Costs

The total expense incurred in manufacturing a product or providing a service, including raw materials, labor, and overheads.

Central Bank

A nation's principal monetary authority, which regulates the money supply and interest rates in pursuit of economic objectives.