Since World War II, the real wage has increased while the employment-to-population ratio has increased. This is consistent with

Question

Quizplus · Accepted Answer

An increase in both real wage and employment-to-population ratio could be due to a rightward shift of the labor demand curve (higher demand for labor) and a movement along the labor supply curve (higher quantity supplied of labor). This would result in both higher wages and more employment. A leftward shift of the labor demand curve and a movement along the labor supply curve (choice B) would result in lower wages and less employment. A leftward shift of the labor supply curve and a movement along the labor demand curve (choice D) would result in higher wages and ambiguous effects on employment. A rightward shift of both the labor demand and supply curves (choice E) would result in higher employment, but the effect on wages would be ambiguous.

Since World War II, the Real Wage Has Increased While