If both the supply of labor and the demand for labor increase, then

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When both the supply of labor and the demand for labor increase, it leads to an increase in the equilibrium quantity of labor, which in turn increases potential GDP. The increase in labor supply means that there are more workers available to work, while the increase in labor demand means that businesses want to hire more workers. As a result, more goods and services can be produced, leading to an increase in potential GDP.

If Both the Supply of Labor and the Demand for Labor