If the wage rate rises, then the firm's long-run marginal costs change, which in turn affects the firm's output level and its employment of labor. This phenomenon is known as

Any supplement to consumer spending that increases domestic aggregate output and income is called a leakage

Indicate whether the statement is true or false

If the labor-force participation rate is 90% and the total population 16 years of age or older is 3 million people, the labor force is

A. 2,450,000 people. B. 2,700,000 people. C. 3,300,000 people. D. 3,900,000 people.