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If the Labor Supply Curve Shifts to the Left,the Equilibrium

question 134

Multiple Choice

If the labor supply curve shifts to the left,the equilibrium real wage ________ and the equilibrium level of employment ________.


Definitions:

Infinitely Inelastic

Describes a situation where the quantity demanded or supplied does not change regardless of price changes.

Economic Rents

The excess payment made to a factor of production over and above what is needed to bring that factor into production, often seen as a measure of market inefficiency.

Aggregate

A total sum or amount made up of distinct components, often used in economics to refer to total output or income.

Equilibrium

An equilibrium where demand meets supply in the marketplace, stabilizing prices as a consequence.

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