Recessions are periods of:
A) leftward shifts in labor supply. B) rightward shifts in labor supply.
C) rightward shifts in labor demand. D) leftward shifts in labor demand.
Question 2
The law of supply reflects the fact that
A) people buy more of a good when its price falls.
B) suppliers have an incentive to use their resources in the way that brings the biggest return.
C) the demand curve is downward sloping.
D) higher prices are more attractive to consumers because they signal a higher quality product.
E) businesses can sell more goods at lower prices.
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