contestada

What are the​ short-run economic effects when u.s. firms substitute labor outside of the u.s. for labor inside the​ u.s.?


a. the demand curve for labor in the u.s.​ increases, and the demand curve in the foreign country will increase.


b. the demand curve for labor in the u.s.​ decreases, and the demand curve in the foreign country will increase.


c. the demand curve for labor in the u.s.​ decreases, and the demand curve in the foreign country will decrease.


d. the demand curve for labor in the u.s.​ increases, and the demand curve in the foreign country will decrease?

Respuesta :

Austine561

Answer:

Correct option is B

Explanation:

the demand curve for labor in the u.s.​ decreases, and the demand curve in the foreign country will increase.

In other words, the wage rate in the U.S country will reduce as a result of low labor demand. While, the wage rate in the Foreign country will increase as a result of high labor demand.

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