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Suppose a Significant Number of Second-Income Earners in the Family

Question 207

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Suppose a significant number of second-income earners in the family decide to reduce their weekly work hours.What will be the effect on aggregate hours per week? on the employment-to-population ratio? on the labor-force participation rate? on the unemployment rate? Would you consider this good news for the economy?

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Aggregate hours per week will fall while...

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