According to the labor-supply-and-demand model if the economy enters a recession then the demand for labor shifts to the left.

Name: According to the labor-supply-and-demand model if the economy enters a recession then the demand for labor shifts to the left.
Brand: Quizplus
Rating: 5.0 (51 reviews)

Question

Quizplus · Accepted Answer

During a recession, businesses tend to reduce production and cut back on hiring, resulting in a decrease in demand for labor. This shift to the left in the demand curve for labor leads to a decrease in wages and employment levels.

According to the Labor-Supply-And-Demand Model If the Economy Enters a Recession