A looseningloosening of the labor market will cause A. the aggregate supply curve to shift down....

A looseningloosening of the labor market will cause

A. the aggregate supply curve to shift down.

B. the aggregate supply curve to shift up.the aggregate supply curve to shift up.

C.the aggregate demand curve to shift left.the aggregate demand curve to shift left.

D.the aggregate demand curve to shift right.

When the labor market is? tight,

A. wages? fall, and the aggregate supply curve shifts down.

B.wages? rise, and the aggregate supply curve shifts down.

C.wages? rise, and the aggregate supply curve shifts up.

D.wages? fall, and the aggregate supply curve shifts up.

Solutions

Expert Solution

1. Loosening of the labour market will cause

c) The aggregate demand curve to shift left

Since there are large supply of labours in the job maeket in loose labour market, employers have the perk to hire the most skilled persons with rigorous competitions among lot of candidates. As there are limited job openings compared to the numbers of job seekers, the aggregate demand curve shifts towards left.

2.Ans:-When the labour market is tight,

b) Wages rise, and the aggregate supply curve shifts down.

As in a tight labout market, employer finds it difficult to hire people for jobs as the economy is close to full employment which makes the pool of extra labour small. Supply of labour is low compared to the demand which results in raising the wages for the posts offered to job seekers causing the shift of aggregate supply curve move downward.

Rahul Sunny answered 2 years ago

Next > < Previous

Related Solutions

5. Which of the followings is not cause the aggregate supply curve to shift: Select one:...

5. Which of the followings is not cause the aggregate supply curve to shift: Select one: a. higher government spending b. expectations of inflation c. tightness of the labor market d. supply shocks unrelated to wages The LM curve slopes upward, because higher aggregate output raises the demand for money and so raises the equilibrium interest rate. Select one: True? False? 8. The LM curve slopes upward, because higher aggregate output raises the demand for money and so raises the...

What makes the aggregate supply curve shift and how does a shift in the aggregate supply...

What makes the aggregate supply curve shift and how does a shift in the aggregate supply curve help expand the economy?

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...

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

(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.

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.

State whether the labor supply curve, labor demand curve or neither of the two will shift...

State whether the labor supply curve, labor demand curve or neither of the two will shift in the current scenario when the government has mandated workplace closures. If there is a shift, is the shift to the left or to the right? Illustrate your answer with a figure and show what happens to the full-employment level of employment following the shifts, if any. Label the axes and curves clearly

What are some factors which would cause a shift in either aggregate supply or aggregate demand?...

What are some factors which would cause a shift in either aggregate supply or aggregate demand? If our oil suppliers suddenly stopped selling oil to the U.S., which curve would shift? What would then happen to our economy? Neat handwriting if written please.

Subjects