The aggregate quantity of labour supplied will generally rise when there is an increase in
1) immigration;
2) labour-force participation rates;
3) the retirement age.
A) 1 and 2
B) 1 and 3
C) 2 and 3
D) 1, 2, and 3
E) 1 only

Question

Quizplus · Accepted Answer

1) Immigration increases the available labour force
2) Labour force participation rates refer to the percentage of the population that is working or actively seeking employment. An increase in this rate means more people are willing to work and therefore supply labour
3) An increase in the retirement age means people are working for a longer period of time, which increases the aggregate quantity of labour supplied.

The Aggregate Quantity of Labour Supplied Will Generally Rise When