Answer:
C. the labor force participation rate falls
Explanation:
Marginally attached workers are not part of labor force, but if they are included and are unemployed then the labor which is actually participating will fall.
As in the labor participation rate = Working labor or simply employed labor divided by total labor force.
Thus, in this case with marginally attached labor, only denominator will increase in the equation.
Therefore, this will state that the labor force participation will fall as marginally attached is considered as unemployed.
Answer:
A. National income must equal domestic product.
True.
Explanation:
National Income is the total value of goods and services produced in a country during a financial period. It is total income from a country's economic activities.
Domestic product is monetary value of all economic activities of a country during a period.
National Income is sum of Investments, Savings, Government expenditures and net exports. National Income equals the domestic products of a country. The equation is as follows:
C + I + G + (X - IM) = DI + NT.
The statement given is true. Disposable income equals the saving plus consumption. The excess of disposable income which is not consumed is saved. Sum of saving and consumption must equal Disposable income in an economy.
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