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Consumers Decide to Ride Bikes More and Drive Cars Less

Question 196

Multiple Choice

Consumers decide to ride bikes more and drive cars less. Bicycle companies expand production while automobile companies fire workers. This is an example of


A) frictional unemployment created by sectoral shifts.
B) frictional unemployment created by efficiency wages.
C) structural unemployment created by efficiency wages.
D) structural unemployment created by sectoral shifts.

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