When the economy swings back toward the boom part of a business cycle which of the following will generally not occur?

Question

Quizplus · Accepted Answer

When the economy swings back toward the boom part of a business cycle, labor supply will generally not decrease. In fact, labor supply may increase as people who were previously discouraged from seeking work may re-enter the labor force, drawn by the prospect of better job opportunities and higher wages.

When the Economy Swings Back Toward the Boom Part of a Business