The government of Fairlandia has announced a new policy requiring all employers to subsidise the childcare arrangements of their workers with young children.For simplicity, suppose that all of the workforce in Fairlandia have young children.What effect would such a policy have on the value of the marginal product of labour? How would this affect the demand for labour? Assuming there is no change in labour supply, what will be the policy's impact on wages and total employment? Why might the labour supply curve shift as a result of this policy?

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The Answer of The government of Fairlandia has announced a new policy requiring all employers to subsidise the childcare arrangements of their workers with young children.For simplicity, suppose that all of the workforce in Fairlandia have young children.What effect would such a policy have on the value of the marginal product of labour? How would this affect the demand for labour? Assuming there is no change in labour supply, what will be the policy's impact on wages and total employment? Why might the labour supply curve shift as a result of this policy?

The Government of Fairlandia Has Announced a New Policy Requiring