What causes the labor demand curve to shift? List three factors that can cause the labor demand curve to shift rightward?
What will be an ideal response?
Any change that affects the entire schedule relating the quantity of labor and the value of marginal product of labor will shift the labor demand curve.
Factors that can cause the labor demand curve to shift rightward are:
a) Increase in output prices: If the price of the output the labor is used to produce increases, the labor demand curve shifts rightward.
b) Technology and productivity: If technological progress increases labor productivity, the demand schedule for labor shifts to the right.
c) Falling input prices: If there is a fall in the price of inputs that are combined with labor to produce output, the labor demand curve shifts rightward.
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The economy is at full employment. If aggregate demand increases,
A) an inflationary gap is created and the AS curve shifts leftward as the money wage rate rises. B) an inflationary gap is created and the AD curve shifts leftward. C) an inflationary gap is created and potential GDP increases to close the ga
Politicians often argue for tariff increases in order to reduce the nation's dependence on imports. If tariffs are increased, the long-run effect is most likely to be:
A. an increase in American imports, and a decrease in American exports. B. an decrease in American imports, and an increase in American exports. C. an increase in both American imports and exports. D. a decrease in both American imports and exports.
If the supply and demand curves for a product both decrease, then equilibrium:
A. quantity must fall and equilibrium price must rise. B. price must fall, but equilibrium quantity may rise, fall, or remain unchanged. C. quantity must decline, but equilibrium price may rise, fall, or remain unchanged. D. quantity and equilibrium price must both decline.
During a recession we will most likely see which of the following?
a. Real GDP decrease, Inflation increase, unemployment increase b. Real GDP decrease, inflation decrease, unemployment increase c. Real GDP increase, inflation increase, unemployment decrease d. Real GDP increase, inflation increase, unemployment increase