What changes would cause the labour supply curve to shift to the left? To the right?...

What changes would cause the labour supply curve to shift to the left? To the right? 8 marks

Expert Solution

he labor supply curve can shift due to a variety of reasons:

(1) Population growth: If the population growth in a county is high, more and more people would be of the working-age population and will desire work. This will increase the supply of labor and the labor supply curve will shift to the right.

(2) Reduction in fertility rates: This will increase the labor supply of women as they do not need to get out of the labor market due to pregnancies and child care responsibilities. Similarly, if the fertility rate is high, the labor force participation will shift to the left.

(3) Price of related goods and services: There are several other prices that people care about while deciding to work or not. For instance, consider the cost of sending a child to daycare. If this decreases, more and more people (especially womrn) with children would refer to work rather than look after the child themseleves. This will shift the labor supply curve to the right. An increase in such costs will shift the labo supply curve to the left.

(4) Presence of social security. If the people think that they will have good social security support, they can retire early and the labor supply curve will shift to the left. On the other hand, if people expect to not have social security, they will work for longer and the labor supply curve will shift to the right.

Rahul Sunny answered 2 years ago

These changes will either cause demand to increase (shift right) or decrease (shift left). Use either...

These changes will either cause demand to increase (shift right) or decrease (shift left). Use either word as applicable, for the short answer. 1. If the price of a good increases because the demand for it increases, What would you expect the demand for its complement to do? 2. If the demand for coffee beans increases, then what is likely to happen to the demand for land on which to grow coffee? 3. If advertising expenditures for the good being...

Describe whether the following changes cause the short-run aggregate supply curve to increase (shift right), decrease...

Describe whether the following changes cause the short-run aggregate supply curve to increase (shift right), decrease (shift left), or neither. (a) The price level increases. (b) Input prices decrease. (c) Firms and workers expect the price level to fall. (d) The price level decreases. (e) New policies cause an increase in the cost of meeting government regulations. (f) The number of workers in the labor force increases.

Describe whether the following changes cause the long-run aggregate supply curve to increase (shift right), decrease...

Describe whether the following changes cause the long-run aggregate supply curve to increase (shift right), decrease (shift left), or neither. (a) The price level increases. (b) The stock of capital in the economy increases. (c) Natural resources increase. (d) The price level decreases. (e) Firms and workers expect the price level to rise. (f) The number of workers in the labor force increases.

Determine whether the events below will cause the aggregate demand curve to shift to the left or to the right.

Determine whether the events below will cause the aggregate demand curve to shift to the left or to the right. Assume the price le remains constant a. Government purchases increase by $2 billion. Aggregate demand shifts (Click to select) b. Real interest rates increase. Aggregate demand shifts (Click to select) c. Taxes increase. Aggregate demand shifts (Click to select) d. Aggregate consumption decreases as consumer confidence falls. Aggregate demand shifts (Click to select) .

(TCO A) What is the cause of a shift in a good's supply curve?

Explain the changes that would cause the dynamic aggregate demand curve to shift.

What does not shift the supply curve of the product A to the right?

What does not shift the supply curve of the product A to the right?A) A rise in the price of AB) An increase in the price of H, a complement in AC) A fall in the price of H, a substitute of A

Which of the following would cause a definite leftward shift of the supply curve? an increase...

Which of the following would cause a definite leftward shift of the supply curve? an increase in the cost of an input and an expectation by firms of a lower price an increase in the price of a complement in production and a decrease in the cost of an input an increase in taxes and an increase in the number of firms an increase in the price of a substitute in production and a decrease in productivity

List the variables that will cause the supply and demand curve to shift?

Which of the following will cause the aggregate demand curve to shift to the right ?...

Which of the following will cause the aggregate demand curve to shift to the right ? a. A decrease in household wealth b. A decrease in the price level c. Consumer expectations of higher future income d. An increase in the interest rate Which of the following events would most likely caused the increase in aggregate demand a. An increase in interest rates b. An increase in household wealth c. A decrease in consumer confidence d. A decrease in the...

Question