An increase in the amount of capital in the economy will shift the demand curve for labor to the left.

Question

Quizplus · Accepted Answer

An increase in the amount of capital in the economy will typically lead to an increase in productivity, which in turn may increase the demand for labor. Therefore, an increase in the amount of capital in the economy is more likely to shift the demand curve for labor to the right, rather than to the left.

An Increase in the Amount of Capital in the Economy