If the Labor Supply Curve Is Upward-Sloping,an Adverse Supply Shock

question 101

Multiple Choice

If the labor supply curve is upward-sloping,an adverse supply shock causes ________ in employment and ________ in the real wage.

• A)no change,a decrease
• B)a decrease,a decrease
• C)a decrease,no change
• D)a decrease,an increase
• E)an increase,an increase

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Definitions:

Mortgages

A type of loan specifically used for the purchase of real estate, where the property itself serves as collateral against the borrowed funds.

Consumer Credit

A form of credit extended to consumers to finance the purchase of goods or services, often associated with personal loans, credit cards, and lines of credit.

Productive Capacity

The maximum output a business, industry, or economy can produce using all available resources efficiently.

Material Wealth

The quantifiable fiscal assets and possessions owned by an individual or entity, often used as a measure of economic status.