The supply of labor:
A) increases during a boom and decreases during a recession.
B) decreases during a boom and increases during a recession.
C) increases during booms and recessions alike.
D) decreases during booms and recessions alike.

Question

Quizplus · Accepted Answer

During a boom, people are more likely to enter the labor force in search of employment, while during a recession, people are more likely to leave the labor force due to job losses and a lack of job opportunities. Therefore, the supply of labor increases during a boom and decreases during a recession.

The Supply of Labor