Question

Suppose the world price of cotton falls substantially. The demand for labor among cotton-producing firms in Texas will ______. The demand for labor among textile-producing firms in South Carolina, for which cotton is an input, will _______. The temporary unemployment resulting from such sectoral shifts in the economy is best described as ___________.

decrease, increase,frictional

Answer 1

Decrease, Increase and frictional

Step-by-step explanation:

Suppose the world price of cotton falls substantially. The demand for labor among cotton-producing firms in Texas will DECREASE. The demand for labor among textile-producing firms in South Carolina, for which cotton is an input, will INCREASE. The temporary unemployment resulting from such sectoral shifts in the economy is best described as FRICTIONAL