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Discuss how shift in the demand for labor affects employment equilibrium in the economy using classical models.

Discuss how shift in the demand for labor affects employment equilibrium in the economy using classical models.

Answers

-Since the demand for labor is the slope of the production function, the labor is the slope of the production functions,the labor demand curve would shift to the right with an upward shift in the production function.
-The shift of the production function and of the labor demand D_N to D'_Nis shown in Panel A and B of figure

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sharon kalunda answered the question on April 11, 2019 at 11:06

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