As the demand for goods and services decreases, job growth _____.

• A. tends to decrease
• B. tends to increase
• C. remains unchanged
• D. becomes unpredictable

Answer: (A)

Verified step by step guidance

1. Understand the relationship between demand for goods and services and job growth: When demand decreases, firms typically sell less output.
2. Recognize that lower demand leads firms to reduce production to avoid excess inventory, which often means needing fewer workers.
3. Recall that job growth refers to the increase in employment levels; if firms reduce production, they are less likely to hire new workers or may even lay off existing ones.
4. Conclude that a decrease in demand generally causes job growth to slow down or decrease because firms adjust labor to match lower production needs.
5. Therefore, the correct completion of the sentence is that job growth 'tends to decrease' as the demand for goods and services decreases.