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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

User Eblume
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Answer:

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

User Kleptine
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