In the Long Run,a Reduction in Labor Supply Would Cause

question 9

Multiple Choice

In the long run,a reduction in labor supply would cause output to ________ and the aggregate price level to ________.

• A)fall; rise
• B)fall; fall
• C)rise; fall
• D)rise; rise

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Definitions:

Social Security Tax

A tax levied on both employers and employees to fund the Social Security program, which provides retirement, disability, and survivorship benefits to qualifying individuals.

Medicare Tax

A payroll tax that funds Medicare, providing health insurance to individuals aged 65 and older in the United States.

Salary

A fixed regular payment, typically paid on a monthly or biweekly basis but often expressed as an annual sum, for professional or office work.

No Child Left Behind Act

A U.S. federal law enacted in 2002 aimed at improving the performance of U.S. primary and secondary schools by increasing standards of accountability for states, school districts, and schools, as well as providing parents more flexibility in choosing which schools their children will attend.