An Increase in Labor Supply Would Cause the IS Curve

question 71

Multiple Choice

An increase in labor supply would cause the IS curve to

• A)shift up and to the right.
• B)shift down and to the left.
• C)remain unchanged.
• D)shift up and to the right only if people face borrowing constraints.

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Definitions:

Rural And Urban Poor

Individuals and communities in both countryside and city settings that live below the poverty line, facing challenges in accessing education, health care, and stable employment.

Developing Countries

Nations with lower levels of industrialization, income, and standards of living compared to developed countries.

National Budget

A financial statement presenting the government's projected revenues and spending for a specific financial year.

Steel Mill

A factory where steel is produced from raw materials through processes such as melting, casting, rolling, and shaping.