Refer to the figure above. The labor market is currently at point E. Which of the following is likely to happen if a recession hits the economy assuming that wages are flexible?
A) The labor market equilibrium will move from E to H.
B) The labor market equilibrium will move from E to D.
C) The labor market equilibrium will move from E to F.
D) The labor market equilibrium will move from E to G.
B
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Refer to Table 4-6. The table above lists the marginal cost of polo shirts by Marko's, a firm that specializes in producing men's clothing. If the market price of Marko's polo shirts is $18
A) there will be a surplus; as a result, the price will fall to $7. B) Marko's will produce four shirts. C) producer surplus from the first shirt is $18. D) producer surplus will equal $22.
If private investment had held up as well as consumption did, the economic contraction from 1929 to 1933 would have been less severe than it was
Indicate whether the statement is true or false