Question: May I ask which one is the correct answer? Labor Demand and Labor Supply (2 pts) Which of the following will cause the local labor
May I ask which one is the correct answer?


Labor Demand and Labor Supply (2 pts) Which of the following will cause the local labor supply curve in New Jersey (NJ) to become flatter? NJ grants people who relocate within the state to find a job a \"cash support\" of $2,000. The Federal Government cuts business taxes A landslide destroys a few major highways in NJ, making travel very time consuming The gasoline price increases to $5 per gallon. none of the above Regional Multiplier (3 pts) Suppose the demand curve in a city is given by P=100-2Q where P denotes prices and Q the local GDP. The supply curve is given by P=10+Q. Now suppose that due to an initial impulse of AX=10 (increase in exports) and further induced increases in local incomes the new induced demand curve changes to P=150-2Q. What are the local GDP and the corresponding income multiplier if prices were constantly at P=40? Q=35, income multiplier=3.5 Q=55, income multiplier=2.5 Q=70, income multiplier=2.5 Q=95, income multiplier=9.5 none of the above
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