The labor-supply-and-demand model predicts that during an economic expansion

Question

Quizplus · Accepted Answer

During an economic expansion, the demand for labor increases as firms produce more goods and services, leading to an increase in employment. This increase in demand for labor also leads to an increase in the real wage as firms bid up the price of labor to attract workers. Therefore, choice A is the best answer as it accurately reflects the predictions of the labor-supply-and-demand model.

The Labor-Supply-And-Demand Model Predicts That During an Economic Expansion