An initial leftward shift in labor demand often creates a cascading chain of events,amplifying the impact of the initial shock.This is known as the ________ effect.
A) rebound
B) multiplier
C) crowding out
D) cluster

Question

Quizplus · Accepted Answer

The multiplier effect refers to how an initial change in one aspect of the economy (in this case, a leftward shift in labor demand) leads to a chain reaction, affecting other aspects and amplifying the overall impact. This effect is often seen in macroeconomic models where changes in one sector of the economy have ripple effects throughout. The other choices (rebound, crowding out, cluster) do not accurately describe this phenomenon.

An Initial Leftward Shift in Labor Demand Often Creates a Cascading