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Assume that the demand curve for civilian labor does not shift when workers are released from the military. First, draw a simple diagram depicting the effect of this influx of workers from the military. (iii) the size of civilian employment in comparison to this flood from the military, graph these events and estimate the magnitude of the reduction in wages for civilian workers as a whole. Do you concur with Professor Pessimist?

Microeconomics, Economics

  • Category:- Microeconomics
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