When an economy experiences an expansion and reaches full employment,what do we expect to rise quickly?
A) Unemployment
B) Labor supply
C) The multiplier
D) Wages

Question

Quizplus · Accepted Answer

As the economy reaches full employment, the demand for labor increases and the pool of available workers decreases. This leads to increased competition among employers for workers, which drives up wages in order to attract and retain employees. Therefore, we can expect wages to rise quickly during an expansion at full employment.

When an Economy Experiences an Expansion and Reaches Full Employment,what