Everything else equal,an increase in the demand for labor will

Question

Quizplus · Accepted Answer

An increase in demand for labor means that firms are willing to hire more workers at each wage rate. This will lead to an increase in employment. As firms compete for a limited number of workers, the real wage rate will increase. This will provide an incentive for workers to supply more labor, which leads to an increase in real output. Therefore, an increase in demand for labor will increase the real wage rate, employment, and real output.

Everything Else Equal,an Increase in the Demand for Labor Will