Employment and total) potential GDP increase if the

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Quizplus · Accepted Answer

If the labor supply curve shifts rightward and the labor demand curve does not shift, employment would increase and potential GDP would also increase. This is because with the increase in labor supply, more workers are available for firms to hire, which can lead to increased production and output. As a result, potential GDP would increase. Additionally, with the increase in employment, more individuals would be earning income and contributing to economic growth.

Employment and Total) Potential GDP Increase If the