Question
Covid-19 provided an external shock to the economy. Businesses were forced to shut down and some will never recover. Record number of workers are applying
Covid-19 provided an external shock to the economy. Businesses were forced to shut down and some will never recover. Record number of workers are applying for unemployment benefits. Government economic rescue plan is changing worker's and employer's incentives. Considering everything you know about labor markets (labor demand and labor supply, wages, unemployment, government programs, productivity, connections between productivity and economic growth, etc.) --- what are your predictions regarding the labor market in the United States? Are short run outcomes going to be different from the long run outcomes? Are different industries going to be affected in different ways? Is there something else that you would like to add?
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