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As the economy expands, the labor force , and as the economy contracts, the labor force .

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As the economy expands, the labor force ________, and as the economy contracts, the labor force ________.

Question 1.

The measured unemployment rate does not fall as much as one might expect when output increases because, as the economy expands,

▸ more people enter the labor force.

▸ firms want to hire additional workers.

▸ more people find jobs.

▸ more people leave the labor force.

Question 2.

As the economy expands, the labor force ________, and as the economy contracts, the labor force ________.

▸ increases; decreases

▸ increases; increases

▸ decreases; decreases

▸ decreases; increases

Textbook

Principles of Economics

Edition: 12^th

Authors: Case, Fair, Oster

Read 93 times

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zmudasam Author

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