Which of the following is likely to reduce the total efficiency units of labor in an economy?
A) An earthquake that kills several people
B) A recession that lowers aggregate demand
C) An increase in the price level
D) A decrease in the price of capital

Question

Quizplus · Accepted Answer

An earthquake that kills several people directly reduces the labor force, thereby reducing the total efficiency units of labor in an economy. Natural disasters can have immediate negative impacts on labor efficiency by reducing the number of available workers.

Which of the Following Is Likely to Reduce the Total