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Suppose that the labor force participation rate decreases, output will decrease

ID: 1228217 • Letter: S

Question

Suppose that the labor force participation rate decreases, output will decrease because

the employment level increases moving the economy out along the production function

the production function shifts down

the production function shifts up

the employment level decreases moving the economy back along the production function

A.

the employment level increases moving the economy out along the production function

B.

the production function shifts down

C.

the production function shifts up

D.

the employment level decreases moving the economy back along the production function

Explanation / Answer

the production function shifts down

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