Refer to the information provided in Figure 28.4 below to answer the question(s) that follow. Figure 28.4
-Refer to Figure 28.4. If the demand for labor ________ and wages are sticky on the downward side, there will be unemployment of 150 million.

Question

Refer to the information provided in Figure 28.4 below to answer the question(s) that follow.  Figure 28.4
-Refer to Figure 28.4. If the demand for labor ________ and wages are sticky on the downward side, there will be unemployment of 150 million.

Quizplus · Accepted Answer

If the demand for labor falls from D to D' and wages are sticky on the downward side, there will be a surplus of labor (unemployment) of 150 million, which is the vertical distance between the quantity supplied at point B and the quantity demanded at point A.

Refer to the Information Provided in Figure 28