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Suppose the world price of cotton rises substantially. The demand for labor among cotton-producing firms in Texas will (decrease/ increase). The demand for labor among textile-producing firms in South Carolina, for which cotton is an input, will (increase/decrease). The unemployment resulting from such sectoral shifts in the economy is best described as (cyclical/frictional/structural/seasonal) unemployment.

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M9500360

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