If sales in an industry decline,
a. demand for additional labor also declines.
b. demand for additional labor increases.
c. demand for additional labor stays the same.
d. the unemployment rate definitely falls.
a. demand for additional labor also declines.
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The IS curve ________
A) shows the relationship between aggregate output and the real interest rate when the goods market is in equilibrium B) tells us that increases in autonomous consumption, investment, government purchases, or net exports raise output for any real interest rate C) tells us that a decrease in taxes or in financial frictions leads to an increase in output for any given real interest rate D) all of the above E) none of the above
A change in government spending has a larger effect on income the
a. larger the elasticity of money demand. b. smaller the elasticity of money demand. c. steeper the LM curve. d. flatter the LM curve.