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Refer to the scenario above. In order to remain fiscally responsible, the president's new policy ...

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Refer to the scenario above. In order to remain fiscally responsible, the president's new policy ...

Refer to the scenario above. In order to remain fiscally responsible, the president's new policy would also reduce spending on social programs whenever oil prices fall (causing an economic contraction). In this case, what would likely happen in the labor market when oil prices fall?

▸ Labor supply curve shifts to the right.

▸ Labor demand curve shifts to the left.

▸ Labor demand curve shifts to the right.

▸ Labor supply curve shifts to the left.

Textbook

Macroeconomics

Edition: 3^rd

Authors: Acemoglu, Laibson, List

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