Less demand in the economy may increase unemployment; this may lead to less spending which may reduce demand further. This is called ?

Related Mcqs:

Which of the following is not a supply side measure ?

A. Increased training B. Providing more information C. Helping individuals to move location to find work D. Increasing spending on existing industries...

Refer to Figure 1 The labour fouce is ?

A. 134.0 million B. None of theses answers C. 92.3 million D. 98.0 million...

Demand for labour is more likely to be wage inelastic if ?

A. Wages are a small proportion of total costs B. Demand for the final product is price elastic C. It is easy to replace labour D. Capital is a good substitute for labour...

In a perfectly competitive labour market firms are wage takers and the marginal cost of labour equals?

A. The average cost of labour B. The marginal product C. The marginal revenue D. The total cost of labour...

Which of the following is an example of a reason why firms might pay efficiency wages ?

A. At equilibrium wages workers sleep when the boss is not looking because workers are not deeply concerned about being fired B. At equilibrium wages workers often quit to find better jobs. C. At equilibrium wages only minimally qualified workers apply for the job D. At equilibrium wages, workers cannot afford a healthy diet so … Which of the following is an example of a reason why firms might pay efficiency wages ?Read More...