If the number of employees who quit, are fired, or retire increases while the hiring of new employees declines, this indicates that the
A)labour demand curve is shifting to the right.
B)labour supply curve is shifting to the right.
C)labour demand curve is shifting to the left.
D)labour supply curve and labour demand curve are both shifting to the right.

Question

Quizplus · Accepted Answer

An increase in the number of employees quitting, being fired or retiring indicates a decrease in the labour supply, while a decline in hiring new employees indicates a decrease in the labour demand. This situation would cause the labour demand curve to shift to the left.

If the Number of Employees Who Quit, Are Fired, or Retire