Your college roommate receives a pay raise at her part-time job from $9 to $11 per hour. She used to work 25 hours per week, but now she decides to work 20 hours per week in order to spend more time studying economics. For this price range, her labor supply curve is

Which of the following is likely to cause an increase in the wage rate and a fall in the employment level in a country?

A) A right shift in the demand curve for labor, without any change in the supply curve for labor B) A left shift in the demand curve for labor, without any change in the supply curve for labor C) A right shift in the supply curve for labor, without any change in the demand curve for labor D) A left shift in the supply curve for labor, without any change in the demand curve for labor

A decrease in government expenditures serves as an example of an adverse supply shock

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