-As a result of the rightward shift in the demand curve for labor from LD₀ to LD₁, the equilibrium level of employment ________ and potential GDP ________.

Question

Quizplus · Accepted Answer

A rightward shift in the demand curve for labor indicates an increase in demand for labor, which typically results in an increase in the equilibrium level of employment. As employment increases, more labor is available for production, potentially leading to an increase in potential GDP.

-As a Result of the Rightward Shift in the Demand