Figure 7.1
-Please refer to Figure 7.1. Suppose the economy is at point D. A health pandemic that results in the loss of the lives to countless workers will:

Question

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Since a health pandemic results in the loss of the lives to countless workers, it will reduce the labor force and shift the production function downward. This will move the economy from point D to point C, where the new production function intersects with the old indifference curve.

Figure 7.1 -Please Refer to Figure 7.1. Suppose the Economy Is at Is