The table below contains scenarios that might affect the demand for or supply of labor. Identify and explain which scenario affects the demand for labor and which affects the supply of labor. Scenario Affects the Demand Affects the Supply of Why? for labor (DL) labor (SL) 1. There is a fall in This affects the When consumer consumer demand for labor. confidence falls, confidence. The demand for labor people spend less and decreases. save more. C +. As CV , Aggregate Expenditure (AE= C+I+G+NX ) & and Aggregate demand (AD) decreases . Sellers have unsold goods, so they cut back production. DL decreases ( ) 2.Immigration department issues more skilled visas for/to foreigners to work in Australia. 3. In VaVa Land, a law is passed forbidding students studying in school from working. and forbidding businesses from hiring anybody who is still studying in school 4.In WaWa Land most women by choice are homemakers and don't work. 5. The RBA and many other central banks world-wide lower the official interest rates. 6. Income tax and Company tax rates fall