The labor supply curve:

Multiple Choice

• shows the relationship between the total quantity of labor supplied by all firmsin the economy and the wage rate.

• shows that, all things being equal, more workers will want to work when wages are higher and less will want to work when wages are lower.

• has a negative slope.

• All of these are true.

Between July of 2013 and August of 2013, the official unemployment rate fell from 7.4% to 7.3%, while the participation rate fell from 63.4% to 63.2%. From this information we can conclude that the unemployment rate fell because:

Multiple Choice

• Employed workers left the labor force.

• Workers from outside the labor force become employed.

• Unemployed workers became employed.

• Unemployed workers left the labor force.