An increase in the supply of labor generates

As capacity utilization in an economy rises:

a. firms sell their fixed assets to remain solvent. b. the gap between the potential output and actual output widens. c. firms reduce their demand for labor. d. employment of inputs by firms declines. e. firms add more factories and machines and increase output.

Which of the following countries began liberal economic reforms during the 1980s and now have significantly more economic freedom than during the mid-1980s?

a. Ireland and New Zealand b. France and Italy c. Sierra Leone and Haiti d. United States and Germany