Suppose we are comparing two cities, A and B. Cities A and B are the same in every respect, other than city A having a larger employment multiplier than city B. Using two graphs, one for city A and one for city B, show how they would be affected if a firm in each city were to hire 200 additional workers for export production. Make sure to include both a labor demand and a labor supply curve in each graph.

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Answer using the labor supply and demand curves for cities A and B to represent this scenario The qu... View the full answer