State two ways the labor supply curve shifts to the right. Explain how each way impacts the equilibrium wage, equilibrium full employment, total output, productivity, and standard of living in the economy. Include the formulas for productivity and standard of living in your answer.
The labor supply curve is a macroeconomic measure of how much labor and at what wage level the average worker in the United States is willing to supply. The labor supply curve can shift for a variety of reasons.
Answer and Explanation: 1
The labor supply curve will shift to the right if the real wage increases, or if there is an artificial government price floor, which pushes the...
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fromChapter 7 / Lesson 4
Learn about the labor supply and demand curves in economics. Explore the labor supply and demand curve shifts, and study the factors that impact both curves.