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Several People in Neonland Are Expecting a Sharp Rise in the Unemployment

Question 36

Multiple Choice

Several people in Neonland are expecting a sharp rise in the unemployment rate in the near future.Which of the following is likely to happen in this case?


A) The labor demand curves of firms in Neonland will shift rightward.
B) Current consumption by households in Neonland will increase.
C) Investment by firms in Neonland will increase.
D) Neonland's GDP will fall.

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