How will the following affect labor force participation rates, labor supply, and unemployment? a. Because the retired
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How will the following affect labor force participation rates, labor supply, and unemployment?
a. Because the retired elderly are a larger and larger fraction of the U.S. population, Congress and the president decide to raise the Social Security tax on individuals to continue paying benefits to the elderly.
QS = 10W - 20 QD = 100 - 5W
b. A national child care program is enacted, requiring employers to provide free child care services.
c. The U.S. government reduces restrictions on immigration into the United States.
d. The welfare system is eliminated.
e. The government subsidizes the purchase of new capital by firms (an investment tax credit).
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Related Book For
Principles Of Macroeconomics
ISBN: 9780374146412
10th Edition
Authors: Karl E. Case, Ray C Fair, Sharon C Oster
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