Unemployment and recessions are sometimes necessary to curb high inflation

Refer to the above figure. Which panel represents what happens in the U.S. job market in the short-run when U.S. firms substitute labor outside of the U.S. for labor inside the U.S.?

A) Panel A B) Panel B C) Panel C D) Panel D

A decrease in equilibrium price increases consumer surplus because existing consumers leave the market due to this change in price

a. True b. False Indicate whether the statement is true or false