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Unformatted text preview: curve to the right 3.3 Increased immigration is likely to lead to a shift in the labor-supply curve to the right 3.4 If wages and employment both fall, this is likely caused by a decrease in the demand for labor. 7.4 labor market equilibrium and full employment 4.3 The typical European works more hours per year than the typical u.s. worker. False 4.4 Another term for full-employment output is potential output . This is when the quantity of labor supplied is the same as the quantity labor demanded. 7.5 Using the full-employment model 5.2. Electricity + Internet can cause major economic fluctuations due to technological innovations. 5.4 Prescott believes that Europeans work fewer hours than Americans because taxes are higher in Europe. 7.6 Dividing output among competing demands for gdp @ full employment 6.1 When the econ operates at full employment an increase in government spending must crowd out consumption....
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- Winter '07