Many economists argue that the labor market may take a long time for wages to adjust to new equilibrium level.

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This is because wages are often sticky, meaning they do not adjust easily and quickly to changes in labor market conditions. Factors such as minimum wage laws, collective bargaining agreements, and social norms can all contribute to this stickiness. As a result, even if there is excess demand or supply of labor, it may take time for wages to shift to a new equilibrium level.

Many Economists Argue That the Labor Market May Take a Long