-As a result of the rightward shift in the demand curve for labor from LD? to LD?, 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 a higher equilibrium level of employment. As employment increases, more labor is available for production, potentially increasing the output of goods and services, thereby increasing potential GDP.

-As a Result of the Rightward Shift in the Demand