Assuming all else equal,when the labor demand curve shifts to the left,________.
A) equilibrium wage rises
B) unemployment falls
C) output falls
D) inflation rises

Question

Quizplus · Accepted Answer

A leftward shift in the labor demand curve indicates a decrease in the demand for labor. Therefore, there will be a decrease in the equilibrium quantity of labor, which will result in a decrease in output. Wage rates will fall in response to decreased demand, and unemployment will increase as there are fewer job opportunities for workers. Inflation is not directly affected by shifts in the labor demand curve.

Assuming All Else Equal,when the Labor Demand Curve Shifts to the Left,________