Which of the following summarizes the impact of population growth on the labor market?

Question

Quizplus · Accepted Answer

Population growth will increase the supply of labor, resulting in a surplus of workers. This will cause employers to reduce wages to attract workers, leading to a decrease in the equilibrium wage. At the same time, since there are more people in the labor force, the quantity of labor demanded will increase. This will lead to an increase in the amount of labor that firms are willing to hire. Therefore, the impact of population growth on the labor market is summarised as an increase in labor supply, a reduction in equilibrium wage, and an increase in the quantity of labor demanded.

Which of the Following Summarizes the Impact of Population Growth