Which of the following would cause an increase in employment in the short run?
A) The minimum wage increases.
B) Exports decrease.
C) There is a negative supply shock.
D) There is an increase in the expected price level.
E) There is an increase in government spending.

Question

Quizplus · Accepted Answer

An increase in government spending would cause an increase in employment in the short run as the government creates jobs or contracts out work to private firms, leading to an increase in demand for labor.

Which of the Following Would Cause an Increase in Employment