Sort the items into four groups: those that change the production function, those that change the demand for labor, those that change the supply of labor, and those that do not change the production function, the demand for labor, or the supply of labor. Say in which direction any changes occur.

Use the following list of events, which occur in the United States one at a time, to work this Problem.

• Dell introduces a new supercomputer that everyone can afford.
• A major hurricane hits Florida.
• More high school graduates go to college.
• The CPI rises.
• An economic slump in the rest of the world decreases U.S. exports.