Question

Panel A: demand ship to the left.

Panel B: demand ship to the right.
Panel C: Supply ship to the inward..
Panel D: Supply ship to the outward.

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.?

Answer 1

[AI-generated answer — Bot GPT 3.5]

Panel B 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. In this panel, the demand for labor shifts to the right, indicating an increase in demand for labor.