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If the Labour Demand Curve Shifts to the Right and the Labour

question 206

Essay

If the labour demand curve shifts to the right and the labour supply curve remains unchanged, what will happen to the equilibrium wage and the equilibrium level of employment? Illustrate your answer with a graph.
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Definitions:

Government Spending

The total amount of money spent by the government, including expenditures on public services, defense, infrastructure, and social welfare programs.

Transfer Payments

Payments made by governments to individuals without the expectation of any goods or services in return, aimed at providing economic support.

Taxes

Compulsory financial charges imposed by a government on individuals and organizations to fund public expenditures.

Disposable Income

Money left after taxes and social security contributions have been subtracted, which can be either spent or saved according to personal preference.

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