In the table below are statistics showing the civilian non-institutional population, the civilian labor force and total employment in year 1 and year 2. Make the computations necessary to complete the table. (Number of persons is in thousands.)

Which of the following will most likely result from a decrease in government spending?

A) An increase in output B) An increase in the price level C) An increase in employment D) A decrease in aggregate supply E) A decrease in aggregate demand

The upward-sloping character of the labor supply schedule assumes that the ________

A) the substitution effect is equal to the income effect B) the substitution effect is larger than the income effect C) the substitution effect is smaller than the income effect D) the ratio of real wages to the marginal product of labor is equal to the equilibrium nominal wage