Use the figure below to answer the following question.

Figure 22.3.3
-Refer to Figure 22.3.3.As a result of the rightward shift in the demand curve for labour from LD0 to LD1,the equilibrium level of employment ________,potential GDP ________,and potential GDP per hour of labour ________.

Question

Use the figure below to answer the following question.
  
Figure 22.3.3
-Refer to Figure 22.3.3.As a result of the rightward shift in the demand curve for labour from LD0 to LD1,the equilibrium level of employment ________,potential GDP ________,and potential GDP per hour of labour ________.

Quizplus · Accepted Answer

As the demand curve for labour shifts rightward, the equilibrium level of employment increases as more workers are demanded. This increase in employment leads to an increase in potential GDP because there are more workers producing output. Additionally, potential GDP per hour of labour increases because firms are willing to pay higher wages to attract workers, indicating that the productivity of each worker has also increased.

Use the Figure Below to Answer the Following Question