The labor force increases when output increases because discouraged workers re-enter the labor force.

Name: The labor force increases when output increases because discouraged workers re-enter the labor force.
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Question

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As output increases, businesses need more labor to produce and sell more goods and services. This creates more job opportunities, which can attract discouraged workers back into the labor force, leading to an increase in the size of the labor force.

The Labor Force Increases When Output Increases Because Discouraged Workers